Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
SHENZEN TELLUS HOLDING CO., LTD.
2024 Semi-annual Report
August 2024
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Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Section I Important Notes, Contents, and Interpretations
The Board of Directors, the Board of Supervisors and directors,
supervisors, and senior executives of the Company guarantee that the present
semi-annual report is true, accurate, and complete without false records,
misleading statements, or major omissions, and undertake the joint and
several legal liabilities arising therefrom.
Fu Chunlong, head of the Company, Huang Tianyang, the person in
charge of accounting, and Yu Taiping, the person in charge of the accounting
firm (accountant in charge) declare to guarantee the truthfulness, accuracy,
and completeness of the financial report in this semi-annual report.
All directors of the Company have attended the meeting of the Board of
Directors to review the semi-annual report.
The Company has described the potential risks in detail in this report.
Investors are hereby kindly requested to pay attention to and read "X. Risks
Faced by the Company and Countermeasures" of "Section III Management
Discussion and Analysis" within this report.
The Company has no plans to distribute cash dividends, issue bonus
shares, and convert reserved funds into share capital.
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Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Table of Contents
Section I Important Notes, Contents, and Interpretations ............................................................ 2
Section II Company Profile and Major Financial Indicators ........................................................6
Section III Management Discussion and Analysis .......................................................................... 9
Section IV Corporate Governance ................................................................................................. 24
Section V Environmental and Social Responsibility .................................................................... 25
Section VI Important Matters ........................................................................................................ 26
Section VII Changes in Shares and Shareholders ........................................................................ 36
Section VIII Preferred Shares ........................................................................................................ 41
Section IX Bonds ..............................................................................................................................42
Section X Financial Report ............................................................................................................. 43
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List of Reference Documents
I. Accounting statements signed and sealed by the legal representative, the person in charge of accounting, and
the person in charge of the accounting firm.
II. Originals of all company documents and announcements that have been publicly disclosed during the
reporting period.
III. The above documents for future reference shall be kept at the Secretariat Office of the Board of Directors of
the Company.
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Interpretations
Interpretation term refers to Interpretation content
CSRC refers to China Securities Regulatory Commission
SZSE refers to Shenzhen Stock Exchange
Shenzhen Branch of China Securities Depository and
CSDC Shenzhen Branch refers to
Clearing Corporation Limited
Company, the Company, and Tellus Holding refers to SHENZEN TELLUS HOLDING CO., LTD.
Reporting period, this reporting period refers to The first half of 2024
the State-owned Assets Supervision and Management
Shenzhen SASAC refers to Commission of Shenzhen Municipal People's
Government
Shenzhen Special Economic Zone Development Group
SDG, SDG Group, and controlling shareholder refers to
Co., Ltd.
SIHC refers to Shenzhen Investment Holdings Co., Ltd.
Shenzhen Jewelry, SJIS refers to Shenzhen Jewelry Industry Service Co., Ltd.
Guorun, Guorun Gold refers to Guorun Gold Shenzhen Co., Ltd.
Shenzhen Tellus Treasury Supply Chain Treasury
Tellus Treasury, Treasury refers to
Supply Chain Company
Shanghai Fanyue, Fanyue refers to Shanghai Fanyue Diamond Co., Ltd.
Zhongtian Company refers to Shenzhen Zhongtian Industry Co., Ltd.
Automobile Industry and Trade Company refers to Shenzhen Automobile Industry and Trade Co., Ltd.
SDG Huari refers to Shenzhen SDG Huari Automobile Enterprise Co., Ltd.
Huari Toyota refers to Shenzhen Huari Toyota Sales & Service Co., Ltd.
Renfu Tellus refers to Shenzhen Renfu Tellus Automobiles Service Co., Ltd.
GAC refers to Gems ＆ Jewelry Trade Association of China
Tellus Jewelry Building, Jewelry Building refers to Tellus Shuibei Jewelry Building
Tellus Gold and Diamond Building, Gold and Diamond
refers to Tellus Gold and Diamond Trading Building
Building
Shenzhen International Jewelry and Jade
Comprehensive Trade Platform refers to
Comprehensive Trade Platform
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Section II Company Profile and Major Financial Indicators
I. Company Profile
Stock abbreviation Tellus A, Tellus B Stock code 000025 and200025
Stock exchange on which the
Shenzhen Stock Exchange
shares are listed
Chinese name of the
深圳市特力（集团）股份有限公司
Company
Chinese abbreviation (if any) Tellus A
English name of the Company
SHENZEN TELLUS HOLDING CO., LTD.
(if any)
English abbreviation (if any) N/A
Legal representative of the
Fu Chunlong
Company
II. Contact Persons and Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Qi Peng Liu Menglei
3/F, Tellus Building, 2nd Shuibei Road, 3/F, Tellus Building, 2nd Shuibei Road,
Address
Luohu District, Shenzhen Luohu District, Shenzhen
Tel. (0755) 83989390 (0755) 88394183
Fax (0755) 83989386 (0755) 83989386
E-mail ir@tellus.cn liuml@tellus.cn
III. Other Information
1. Contact information
Whether the Company's registered address, office address and postal code, company website, e-mail, etc. changed during the
reporting period?
□ Applicable Not applicable
There was no change in the Company's registered address, office address and postal code, website, e-mail, etc. during the reporting
period. Please refer to the 2023 Annual Report for details.
2. Information disclosure and designated location
Whether the information disclosure and designated location changed during the reporting period?
□ Applicable Not applicable
The names and websites of the stock exchange websites and media on which the Company disclosed the semi-annual report and
the designated location of the Company's semi-annual report remained unchanged during the reporting period. For details, please
refer to the 2023 annual report.
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3. Other relevant information
Whether other relevant information changed during the reporting period?
□ Applicable Not applicable
IV. Major Accounting Data and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data for the previous years
□Yes No
Increase/decrease in the
Same period of the previous reporting period over the
Reporting period
year same period of the previous
year
Operating revenue (RMB) 1,580,023,748.85 704,836,410.94 124.17%
Net profit attributable to
shareholders of the listed 76,662,479.69 44,139,962.93 73.68%
company (RMB)
Net profit attributable to
shareholders of the listed
company after non-recurring 70,454,786.31 37,650,680.93 87.13%
gains and losses (RMB) are
deducted
Net cash flows from operating
107,309,488.92 -10,241,941.90 1,147.75%
activities (RMB)
Basic earnings per share
0.1778 0.1024 73.63%
(RMB/share)
Diluted earnings per share
0.1778 0.1024 73.63%
(RMB/share)
Weighted average ROE 4.66% 2.89% 1.77%
Increase/decrease at the end
of the reporting period as
End of the reporting period End of the previous year
compared with the end of the
previous year
Total assets (RMB) 2,493,228,681.47 2,403,851,684.45 3.72%
Net assets attributable to
shareholders of the listed 1,667,204,726.70 1,603,905,054.93 3.95%
company (RMB)
V. Discrepancy of Accounting Data under the Domestic and Foreign Accounting Standards
1. Discrepancy in net profit and net assets in the financial report disclosed simultaneously according to
international accounting standards and Chinese accounting standards
□ Applicable Not applicable
There is no discrepancy in net profit and net assets in the financial reports disclosed by the Company following international
accounting standards and Chinese accounting standards in the reporting period.
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2. Discrepancy in net profit and net assets in the financial report disclosed simultaneously according to
overseas accounting standards and Chinese accounting standards
□ Applicable Not applicable
There is no discrepancy in net profit and net assets in the financial reports disclosed by the Company following overseas
accounting standards and Chinese accounting standards in the reporting period.
VI. Non-recurring Profit or Loss Items and Amounts
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profit and loss of non-current assets
disposal (including the write-off part of -227.20
the provision for impairment of assets)
Government subsidies included in the
current profits and losses (excluding
those that are closely related to the
Company's normal business operations,
5,606,545.82
in line with national policies and
regulations, and granted per defined
criteria, with a continuous influence on
the Company's profits and losses)
Profit or loss from changes in the fair
value of financial assets and financial
liabilities held by the Company as a non-
financial company, as well as profit or
loss from the disposal of the financial 2,373,536.49 Mainly from money management returns
assets and financial liabilities, except in
effective hedging activities related to the
normal operating activities of the
Company.
Other non-operating incomes and
expenditures apart from the aforesaid 1,004,694.78
items
Less: Amount of influence of income tax 2,237,809.41
Amount of influence of minority
539,047.10
stockholder's interests (after-tax)
Total 6,207,693.38
Other gains or losses conforming to the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.
Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses
□ Applicable Not applicable
The Company does not define any non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses.
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Section III Management Discussion and Analysis
I. Main Business of the Company during the Reporting Period
(I) The main business of the Company during the reporting period includes jewelry third-party services,
commercial complex operations, and property leasing business.
1. Jewelry third-party services: With the development vision of "being committed to providing high-quality
service supply and growing with the jewelry industry", the Company relies on its advantages, gathers domestic
and foreign high-quality industry resources, and cooperates with outstanding leading enterprises in the industry to
build a third-party service platform that meets the needs of the vast industry. The company has set up subsidiaries
such as Shenzhen Jewelry, Guorun Gold, Tellus Treasury, and Shanghai Fanyue. Through the construction and
operation of a comprehensive jewelry and jade trade platform, gold circulation business, and third-party
depository business for high-end jewelry, it creates a wide range of service products to fully meet various needs
from customers at different levels, and gradually builds and enriches the service ecosystem of the jewelry industry
through a sound service industrial chain. It strives to fill the market gap, solve customers' pain points, play a
benchmarking role in the industry, and promote the compliance process of the industry.
2. Commercial complex operation and property leasing business: The Company is the largest owner of Tellus-
Gmond Gold Jewelry Industrial Park in the Shuibei area. The Tellus Jewelry Building and Tellus Gold and
Diamond Trading Building invested by the Company have been put into operation, maintaining a high occupancy
rate. In addition, the Company holds a significant amount of property resources in areas such as Luohu and Futian
in Shenzhen. While maintaining the stability of its existing leasing business, the Company actively promotes the
improvement of property quality. It is transitioning its old properties from traditional simple leasing to
commercial property operation, with a focus on enhancing and exploring the added value of its property brands.
This initiative aims to establish innovative industrial projects that align with the overall strategic layout of the city,
the district, and the Company.
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(II) Description of the main business models of the jewelry business
1. Sales model
At present, the Company adopts both wholesale and retail as the main sales models for gold and jewelry.
Additionally, it provides supporting services such as customs declaration, gold exchange, and safe deposit box
leasing. The sales revenue composition of the jewelry business in H1 2024 is as follows:
Amount of operating Amount of operating cost
Model revenue (RMB 10,000) (RMB 10,000) Gross profit rate
Wholesale 101,708.16 99,565.35 2.11%
Retail sales 41,920.73 41,155.49 1.83%
Other services 543.57 321.84 40.79%
Total 144,172.46 141,042.68 2.17%
2. Production model
At present, the Company's gold and related products mainly use a commissioned processing model, while
diamonds, colored gemstones, and other products do not involve processing. The production mode composition in
H1 2024 is as follows:
Production model Amount (RMB 10,000) Proportion
Finished products through the
140,688.84 100.00%
commissioned processing
Total 140,688.84 100.00%
3. Purchase model
Gold and related products: The Company purchases gold raw materials from Shanghai Gold Exchange or other
qualified organizations or leases them from banks;
Diamonds: The Company purchases finished diamonds from overseas diamond suppliers and imports them
through Shanghai Diamond Exchange;
Other jewelry and jade: The Company purchases such products from overseas jewelry and jade suppliers and
handles tax-paying import procedures through Shenzhen Jewelry.
The procurement model in H1 2024 is as follows:
Purchase model Raw materials Purchase quantity Purchase amount
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(kg) (RMB 10,000)
Spot trading Gold 2,698.00 127,457.16
Spot trading Panda gold coin 50.31 2,479.47
Spot trading Silver panda coin 352.60 244.31
Rental business Gold 36.00 1,540.51
Total 3,136.91 131,721.45
4. Operational situation of physical stores during the reporting period
Operating
Sales volume Operating cost in
Store revenue in H1
Address Opening time (kg) in H1 H1 2024
No. 2024
2024 (RMB 10,000)
(RMB 10,000)
1/F, Tellus Jewelry September
1 150.01 6,775.46 6,755.53
Building 2023
B1, Annex Building,
2 March 2024 39.65 1,923.40 1,915.04
Tellus Jewelry Building
5. Online sales during the reporting period
Operating revenue in
Operating cost in H1
S/N Store name Opening time H1 2024
(RMB 10,000)
(RMB 10,000)
1 Tellus Shuibei's Tmall flagship store November 6,350.17 6,202.66
2023
2 Tellus Shuibei's JD flagship store November 9,855.19 9,385.74
2023
3 "Self-operated mini-program private- March 2024 131.27 129.34
sphere store" on WeChat
4 Tellus Shuibei's Alibaba auction store May 2024 16,792.39 16,675.18
5 Tellus Shuibei's Pinduoduo flagship June 2024 92.84 91.76
store
6. Inventory of gold and jewelry business during the reporting period
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As of June 30, 2024, the inventory balance of the Company's jewelry business was RMB 92.1375 million, of
which the amount measured at fair value was RMB 91.4249 million, corresponding to hedged items with
commodity futures contracts and T+D contracts as hedging instruments and the value of gold leased from the
bank.
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for
Self-Regulatory Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related
business".
II. Analysis of Core Competitiveness
(I) Location advantage
The company is located in Shuibei, the core area of the jewelry industry in Shenzhen, and an influential
professional trading center in China's jewelry industry. Shuibei occupies over 70% of the Chinese gold and
jewelry market and houses over 10,000 gold and jewelry enterprises within a one-square-kilometer area of its core
region. According to data from the Shenzhen Gold & Jewelry Association, Luohu District is home to more than
40 leading jewelry companies and 29 "China Famous Companies", accounting for 30% of the total in the country.
Shuibei has established a complete industrial chain covering design and R&D, production and manufacturing,
exhibition and trading, brand operation, headquarters offices, inspection and testing, and talent training.
The Shuibei area gathers numerous jewelry suppliers and strong merchants, providing the Company with an
excellent business environment and development platform. The Company can quickly capture market dynamics,
respond promptly to market changes, and provide comprehensive third-party jewelry services that meet industry
needs.
(II) Resource advantage
By leveraging the endorsement of state-owned assets and harnessing industrial synergies, the Company
deeply integrates resources from both the supply and demand sides of the jewelry industry. This positions the
Company with a certain advantage in coordinating upstream resources. The Company has established direct
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cooperation with domestic and foreign gold jewelry suppliers and processors and held many domestic commodity
inspection meetings and bonded exhibitions to reduce the cost of commodity inspection and raw material
procurement and improve its operation efficiency. In the first half of the year, a second-hand diamond inspection
meeting was held, showcasing nearly 10,000 carats of loose diamonds and rough diamonds. The event attracted
over 200 professionals, with nearly 70% coming from international diamond businesses abroad. The platform is
creating a new trading model for the jewelry element market, introducing greater liquidity and flexibility, and
injecting new vitality into the diamond market. In terms of customer expansion, the Company has accumulated
certain industry resources and influence. It closely cooperates with the Gems & Jewelry Trade Association of
China and Shenzhen Gold & Jewelry Association, actively participates in and organizes various industry activities,
participates in the formulation of industry standards, and continuously expands the popularity and influence of the
industry. At the same time, it has grasped the trend of digitalization and developed an online platform through
digital transformation. The platform has preliminarily established a certain level of business support and digital
service capabilities.
In addition, the Company has also brought stable business income and cash flow through commercial
complex operations and property value improvement, which lays a solid foundation for its long-term development.
(III) Management advantage
In terms of strategic control, the company continues to improve its management level, strengthen strategic
decomposition and implementation, optimize and adjust the organizational structure, and enhance its functional
guarantee capability. From the perspective of promoting operations through management, the Company has
established a "4S" management mainline system based on the management orientation and the actual situation of
the Company. Scientific and closed-loop management concepts have been established and various management
links have been linked, which serve the Company's strategic implementation in a unified way.
In terms of risk control, the Company has formulated strict internal business control processes such as
supplier access standards, a customer evaluation system, and a procurement price comparison system to realize
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multi-level risk control over capital, information, and logistics. At the same time, it has strengthened internal self-
inspection and risk control system construction, continuously optimized business processes and internal control
systems in the process of business implementation, and carried out research and innovation on new categories and
new business models under the premise of controllable risks. With the help of information system construction,
system data analysis, and foresight, the risk early warning capability of business and risk control departments has
been improved.
In terms of human resources, the Company has optimized the employee employment mechanism and
interview process to unleash organizational vitality through two-way communication. It has optimized and
improved the training system, established a mentorship system to rapidly enhance the work capabilities and
efficiency of new employees, preliminarily built a middle-level management training mechanism centered around
management ability assessment and feedback, and increased efforts in talent development.
III. Analysis of Main Business
Overview
See "I. Main Business of the Company during the Reporting Period" for relevant content.
YoY changes in main financial data
Unit: RMB
Year-on-year
Same period of the
Reporting period increase/decreas Reason of change
previous year
e
The business volume of gold
Operating revenue 1,580,023,748.85 704,836,410.94 124.17% increased during the reporting
period
Increasing with the gold business
Operating cost 1,451,925,990.76 608,604,638.40 138.57%
increase
Selling expenses 10,655,583.07 11,963,099.01 -10.93%
Administrative
23,758,940.40 28,817,829.38 -17.55%
expenses
The main factor was loan interest
Financial expenses 3,685,893.43 1,391,732.79 164.84% expenses for increased gold
business
The main reason was the increase in
Income tax expenses 19,663,631.30 12,466,659.92 57.73% total profit compared to the same
period last year
Mainly R&D input for the jewelry
R&D input 1,525,705.48
platform
Net cash flow from Firstly, the reduction in inventory
107,309,488.92 -10,241,941.90 1,147.75%
operating activities for the gold business; secondly, an
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increase in rental income from the
Tellus Gold and Diamond Building.
The main reason is that the on-
maturity redemptions related to
Net cash flows from money management during this
-136,462,605.64 -272,561,687.30 49.93%
investing activities reporting period increased
compared to the same period last
year.
The main reason is that the increase
Net cash flows from in loans for the gold business
24,828,865.44 152,917,899.92 -83.76%
financing activities during this reporting period
decreased.
Firstly, a year-on-year decrease in
money management redemptions
during the reporting period;
Net increase in cash
-4,323,672.93 -129,885,729.28 96.67% secondly, a reduction in inventory
and cash equivalents
for the gold business; thirdly, an
increase in rental income from the
Tellus Gold and Diamond Building.
Significant changes in the Company's profit composition or source during the reporting period
□ Applicable Not applicable
There are no significant changes in the Company's profit composition or source during the reporting period.
Operating revenue composition
Unit: RMB
Reporting period Same period of the previous year
Proportion in Year-on-year
Proportion in increase/decrease
Amount operating Amount
operating revenue
revenue
Total operating
1,580,023,748.85 100% 704,836,410.94 100% 124.17%
revenue
分行业
Wholesale and
1,441,734,815.25 91.25% 536,696,671.25 76.14% 168.63%
retail of jewelry
Property lease and
138,078,049.35 8.74% 115,235,431.84 16.35% 19.82%
service
Others 210,884.25 0.01% 52,904,307.85 7.51% -99.60%
分产品
Wholesale and
1,441,734,815.25 91.25% 536,696,671.25 76.14% 168.63%
retail of jewelry
Property lease and
138,078,049.35 8.74% 115,235,431.84 16.35% 19.82%
service
Others 210,884.25 0.01% 52,904,307.85 7.51% -99.60%
分地区
South China 1,017,725,204.81 64.41% 648,208,941.49 91.97% 57.01%
East China 89,258,835.53 5.65% 0.00 0.00%
North China 426,593,372.53 27.00% 56,627,469.45 8.03% 653.33%
Central China 37,329,652.67 2.36% 0.00 0.00%
Other regions 9,116,683.31 0.58% 0.00 0.00%
Situation of industries, products, or regions with operating revenues or operating profits accounting for more than 10% of that of
the Company
Applicable □ Not applicable
Unit: RMB
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Year-on-year Year-on-year
Gross Year-on-year
movement in movement in
Operating revenue Operating cost profit movement in
operating gross profit
rate operating cost
revenue rate
By industry
Wholesale and
1,441,734,815.25 1,410,424,605.61 2.17% 168.63% 170.55% -0.70%
retail of jewelry
Property lease
138,078,049.35 41,501,385.15 69.94% 19.82% 7.49% 3.45%
and service
分产品
Wholesale and
1,441,734,815.25 1,410,424,605.61 2.17% 168.63% 170.55% -0.70%
retail of jewelry
Property lease
138,078,049.35 41,501,385.15 69.94% 19.82% 7.49% 3.45%
and service
分地区
South China 1,017,514,320.56 897,350,269.66 11.81% 70.92% 78.15% -3.58%
East China 89,258,835.53 87,765,772.74 1.67%
North China 426,593,372.53 421,213,393.61 1.26% 653.33% 649.17% 0.55%
Central China 37,329,652.67 36,682,757.99 1.73%
Other regions 9,116,683.31 8,913,796.76 2.23%
The Company's main business data for the most recent period after adjustment based on the caliber at the end of the reporting
period if the statistical caliber of the Company's main business data is adjusted during the reporting period
□ Applicable Not applicable
IV. Analysis of Non-Main Business
Applicable □ Not applicable
Unit: RMB
Proportion in total
Amount Reason Sustainable or not
profit
Wealth management income
and investment income with
Investment income 14,706,604.25 14.83% the recognition of the equity No
method of shareholding
enterprises
Changes in fair value of
unexpired wealth
Profits and losses of
-2,981,593.36 -3.01% management products, gold No
changes in fair value
leasing business, and
hedging tools
Changes fee for businesses
to change contracts, and the
Non-operating income 1,112,033.25 1.12% No
liquidated damages for early
cancellation of leases.
Liquidated damages repaid
Non-operating
107,338.47 0.11% to businesses due to No
expenses
renovation
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V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: RMB
End of the reporting period As of the end of the previous year Explanat
Proportion
ion of
Proportion in total Proportion in increase/d
Amount Amount major
assets total assets ecrease
changes
Cash at bank
228,605,222.29 9.17% 220,340,961.64 9.17% 0.00%
and on hand
Accounts
197,419,232.54 7.92% 99,635,751.52 4.14% 3.78%
receivable
Inventories 92,137,538.10 3.70% 178,425,833.88 7.42% -3.72%
Investment
992,091,283.53 39.79% 1,008,137,341.80 41.94% -2.15%
properties
Long-term
equity 81,390,604.97 3.26% 76,511,487.57 3.18% 0.08%
investment
Fixed assets 74,890,303.79 3.00% 78,935,843.49 3.28% -0.28%
Construction in
15,159,796.57 0.61% 7,279,570.05 0.30% 0.31%
progress
Right-of-use
67,177,997.92 2.69% 71,904,716.50 2.99% -0.30%
assets
Short-term
160,119,111.11 6.42% 145,131,694.44 6.04% 0.38%
borrowings
Contract
5,509,635.75 0.22% 7,079,975.38 0.29% -0.07%
liabilities
Long-term
0.00% 0.00 0.00% 0.00%
borrowings
Lease liabilities 64,188,913.70 2.57% 69,524,214.23 2.89% -0.32%
2. Primary overseas assets
□ Applicable Not applicable
3. Assets and liabilities at fair value
Applicable □ Not applicable
Unit: RMB
Gains or
Accumulate Impair
losses from Othe
Period- d change in ment Purchase
changes in Sales amount r Period-end
Item beginning fair value accrued amount in this
fair value in this period chan amount
amount included in in this period
during this ges
equity period
period
Financial
assets
1. Trading 206,294,93 219,551.09 411,000,000.0 240,000,000.0 377,514,483.
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Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
financial 1.94 0 0 03
assets
(excluding
derivative
financial
assets)
2.
Derivative
298,320.00 -298,320.00 0.00
financial
assets
3. Other
67,627,948. 1,706,900.0 105,986,078.
debt 62,161,530.32 25,510,300.00
60 0 92
investments
4. Other
equity
383,317.67 383,317.67
instrument
investments
Subtotal of
274,604,51 1,628,131.0 473,161,530.3 265,510,300.0 483,883,879.
financial
8.21 9 2 0 62
assets
Hedged 85,802,395. 1,648,441,608 1,664,937,066 68,886,072.5
-420,864.45
items 07 .31 .37 6
Total of the 360,406,91 1,207,266.6 2,121,603,138 1,930,447,366 552,769,952.
above 3.28 4 .63 .37 18
Financial 56,883,334. 2,208,355.9 37,433,630.7
17,407,800.00 39,065,860.00
liabilities 76 8 4
Other changes
Whether major changes occurred to the measurement attributes of the main assets of the Company within the reporting period?
□Yes No
4. Restriction on asset rights as at the end of the reporting period
(Unit: RMB)
Item Book value on June 30, 2024
Futures and options account margin 4,104,642.60
Gold leasing security deposits and interests 40,477,138.89
Margin payable security deposits and interests 28,123,726.04
Total 72,705,507.53
VI. Analysis of Investment
1. Overview
Applicable □ Not applicable
Investment in the reporting period Amount of investment in the same period
Change range
(RMB) of the previous year (RMB)
13,519,694.27 81,253,722.19 -83.36%
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2. Significant equity investment acquired in the reporting period
□ Applicable Not applicable
3. Significant non-equity investment ongoing in the reporting period
□ Applicable Not applicable
4. Financial assets investment
(1) Security investment
□ Applicable Not applicable
The Company had no securities investment during the reporting period.
(2) Investment in derivatives
Applicable □ Not applicable
1) Investment in derivatives for hedging purposes during the reporting period
Applicable □ Not applicable
Unit: RMB 10,000
Proportion
Gains or
of the
losses
Accumula investment
Initial from Buying Selling
ted amount in
invest Period- changes amount amount Period-
Type of investment change in net assets of
ment beginning in fair during the during the end
in derivatives fair value the
amou amount value reporting reporting amount
included Company at
nt during period period
in equity the end of
this
the reporting
period
period
Futures (Everbright
38.2 0 0 0 221.60 221.60 0 0.00%
account)
Futures (T+D
77.6 358.15 0 0 701.37 1,055.12 4.39 0.00%
account)
Futures (Huatai
1,050 667.45 -19.54 0 20,718.97 21,127.95 258.47 0.14%
account)
Revenue swap
50 0 0 0 154.18 154.18 0 0.00%
(CITIC account)
Futures (CITIC
57.2 146.61 -37.96 0 55,199.07 52,727.25 611.90 0.34%
account)
Total 1,273 1,172.21 -57.50 0 76,995.19 75,286.10 874.76 0.48%
Accounting policies
and specific
principles of
accounting for
No
hedging business
during the reporting
period and whether
there was any
19
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
significant change in
them compared to
the previous
reporting period
Explanation of
actual gains and Due to the rise in gold price, the actual hedging loss of futures account during the reporting period was
losses during the RMB 9.8331 million.
reporting period
Measurement method of hedge effectiveness: Hedge effectiveness = change in the price of futures/change
in the price of spot goods. The closer this value is to 100%, the higher the effectiveness of the hedging will
be. The losses from futures due to price fluctuations amounted to RMB 9.8331 million, while the spot
Explanation of
goods saw an increase of RMB 8.3144 million during the reporting period. This was due to the significant
hedging
efforts to expand the online e-commerce retail model during the reporting period. Additionally, the gold
effectiveness
prices experienced considerable volatility in May and June of this reporting period, which weakened the
effectiveness of hedging under the retail model. Overall, the Company's hedging strategy remains
effective.
Source of funds for
investment in Self-owned funds
derivatives
The Company's hedging transactions follow the following basic principles: The value change of futures
variety and contract quantity is roughly equivalent to that of spot positions; futures positions are in the
opposite direction to spot positions; and the time period in which the futures position is held corresponds
Risk analysis and to the time period in which the risk is borne by the spot market. The main risks of positions in gold futures
control measures for include basis risks, forced liquidation risks, and operational error risks.
positions in 1. For the basis risk, when the basis risk shrinks, prioritize using gold leases as inventory and minimize or
derivatives during keep no proprietary stock;
the reporting period 2. For the risk of forced liquidation, establish a risk alert system that triggers a set capital plan when there
(including but not are significant fluctuations in gold price to maintain adequate funds in margin accounts; if there is an
limited to market emergency triggering forced liquidation, report it to the Company's management promptly and replenish
risks, liquidity risks, the hedging position that has been forced liquidated in an appropriate time;
credit risks, 3. For the risk of operational errors, implement a trader training mechanism, strictly adhere to system and
operational risks, workflow requirements to perform operations and reviews accordingly, and provide daily reports
and legal risks) consistently.
The Company has established a scientific and effective hedging management system, which is
implemented through four key aspects: Organizational structure design, planning systems, management
and evaluation procedures, and dynamic risk monitoring.
For changes in
market price or
product fair value
during the reporting
period of invested
During the reporting period, the fair value change of the futures contract hedging the holding position was
derivatives, analysis
RMB -575,000. The Company adopted the closing price of the futures contract held in the Shanghai Gold
of the fair value of
Exchange on the last trading day in June 2024 (June 28) as the fair value, and the floating profit and loss
derivatives shall
was the change in fair value.
disclose the specific
measures used and
related hypotheses
and parameter
setting.
Involvement in
litigation (if None
applicable)
20
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2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no investment in derivatives for speculative purposes.
5. Usage of raised funds
□ Applicable Not applicable
No raised funds were used within the reporting period of the Company.
VII. Sales of Major Assets and Equity
1. Sales of major assets
□ Applicable Not applicable
No major asset was sold during the reporting period of the Company.
2. Sales of major equity
□ Applicable Not applicable
VIII. Analysis of Main Holding Companies and Joint-stock Companies
Applicable □ Not applicable
Main subsidiaries and joint-stock companies that have an impact on the Company's net profit of 10% or more
Unit: RMB
Com
Company Registere Operating Operating
pany Main business Total assets Net assets Net profits
name d capital revenue profit
type
Jewelry fair
planning, jewelry
consignment
Shenzhen
sales, exhibition
Jewelry
Subsi and display 100,000, 60,317,832 39,818,475.8 4,885,485. 3,887,147.2 3,862,947.2
Industry
diary planning, 000 .10 9 65 8 8
Service
conference
Co., Ltd.
services, and
marketing
planning
Sales of gold bars
Guorun for investment,
Gold Subsi gold recycling, 200,000, 410,840,60 198,582,706. 1,427,534,
488,490.37 670,179.30
Shenzhen diary and gold 000 4.30 09 581.98
Co., Ltd. purification/excha
nge services
Shenzhen Purchase, sales,
Tellus and leasing of
- -
Treasury Subsi gold ornaments 50,000,0 118,905,93 44,918,583.6 9,245,679.
1,506,800.7 1,506,803.5
Supply diary and precious 00 8.53 6 34
7 7
Chain metal products,
Treasury leasing of safe
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Supply deposit boxes,
Chain and warehousing
Company services
Shenzhen
Zhongtian Subsi 366,221, 606,395,56 462,204,351. 55,717,572 38,792,461. 29,744,525.
Property lease
Industry diary 900 0.10 13 .41 21 80
Co., Ltd.
Shenzhen
Automobil
Subsi 58,960,0 233,769,12 199,440,254. 16,984,909 17,672,810. 12,842,908.
e Industry Property lease
diary 00 0.91 87 .89 03 88
and Trade
Co., Ltd.
Shenzhen
Xinyongto
ng Motor
Subsi 9,607,80 13,093,868 3,356,228. 2,194,179.8 2,084,354.2
Vehicle Property lease 7,302,422.22
diary 0 .31 73 1 4
Inspection
Equipment
Co., Ltd.
Shenzhen
Tellus
Xinyongto
ng
Subsi 32,900,0 96,549,794 77,888,966.3 6,152,466. 4,061,708.4 3,048,221.5
Automobil Property lease
diary 00 .12 1 75 1 6
e
Developm
ent Co.,
Ltd.
Shenzhen
Renfu Joint-
Tellus stock Automobile sales 30,000,0 229,844,77 75,433,079.9 385,757,90 46,885,304. 35,552,134.
Automobil comp and maintenance 00 3.37 8 7.13 56 52
es Service any
Co., Ltd.
Investment in
Shenzhen
Joint- industrial
Tellus-
stock development, 53,704,9 342,612,56 83,061,356.6 68,891,890 19,400,904. 14,559,666.
Gmond
comp property 60 6.25 4 .69 56 49
Investment
any management, and
Co., Ltd.
leasing
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable Not applicable
Description of main holding companies and joint-stock companies
IX. Structured Entities Controlled by the Company
□ Applicable Not applicable
X. Risks Faced by the Company and Countermeasures
(I) Market environment changes:
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Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
The increase in international friction and disputes has a significant impact on the price trends of raw
materials such as gold. At the same time, changes in the domestic economic environment greatly influence
consumers' purchasing power and willingness to spend, posing challenges for the development of the jewelry
industry.
To address this risk, the Company will actively implement various preventive measures: Firstly, continuously
strengthen risk management by establishing a compliance management department, innovate risk prevention and
control methods, and enhance risk management capabilities; secondly, firmly advance the Company's strategic
transformation, promote the implementation of transformation projects through innovative business models,
explore incremental markets, expand business scale, and seek new profit growth points to continuously improve
the Company's competitiveness and provide a solid foundation for the Company's long-term stable development.
(II) Insufficient reserve of professionals
Talent is the foundation of enterprise development. After continuous optimization and adjustment, the talent
issue has been alleviated to a certain extent. However, with the continuous deepening and expansion of
transformation business, the shortage of talent is still serious.
In response to this risk, the company conducted a comprehensive talent demand analysis, clarifying the
required number of personnel, professional skills, and quality requirements for each position. A precise
recruitment strategy was developed to attract and select outstanding talent. Talent cultivation and development
were strengthened, and employees' professional qualities and overall capabilities were enhanced through both
internal and external training programs. A mentoring system was implemented to provide one-on-one guidance
for young employees, facilitating their continuous growth and development within the Company. A solid talent
foundation for the Company was constructed through various measures.
XI. Implementation of the Action Plan for "Improvement in Quality and Return"
Has the Company disclosed the announcement on the action plan for "improvement in quality and return"?
□Yes No
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Section IV Corporate Governance
I. Annual General Meeting of Shareholders and Extraordinary General Meetings of
Shareholders during the Reporting Period
1. General Meeting of Shareholders during the reporting period
Investor
Meeting
Meeting attendance Holding date Disclosure date Meeting's resolutions
type
ratio
For details, please refer to the
Announcement on Resolutions of
2023 Annual Annual
2023 Annual General Meeting of
General general 54.36% April 23, 2024 April 24, 2024
Shareholders (Announcement No.:
Meeting meeting
2024-015) on Securities Times and
CNINFO (www.cninfo.com.cn).
2. Preferred share shareholders with resumed voting rights requested to convene an Extraordinary
General Meeting of Shareholders
□ Applicable Not applicable
II. Changes in the Company's Directors, Supervisors, and Senior Executives
Applicable □ Not applicable
Name Position Type Date Reason
Resigned from the
Zhang Zheng Supervisor Resigned April 8, 2024 position due to work
arrangements.
III. Profit Distribution and Capital Reserves Converted to Share Capital in the Reporting
Period
□ Applicable Not applicable
The Company plans to not distribute cash dividends, issue bonus shares, or transfer share capital from capital reserve in the half
year.
IV. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
□ Applicable Not applicable
During the reporting period, there was no equity incentive plan, employee stock ownership plan, or other employee incentive
measures, and their implementation for the Company.
24
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Section V Environmental and Social Responsibility
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department?
□Yes No
Administrative penalties imposed for environmental problems during the reporting period
Impact on the
Rectification
Name of company Reason for production and
Violation Penalty measures of the
or subsidiary punishment operation of the
Company
listed company
None None None None None None
Disclosure of other environmental information with reference to key pollutant discharge units: Not applicable
Measures to reduce carbon emissions during the reporting period and effects
□ Applicable Not applicable
Reasons for failure to disclose other environmental information: The Company and its subsidiaries are not key pollutant discharge
units announced by the environmental protection department, and there was no punishment due to violations of laws and
regulations during the reporting period.
II. Social Responsibilities
The Company's Party Committee actively responded to the arrangements and arrangements by higher-level
Party organizations to implement the national rural revitalization initiative. In the first half of 2024, it invested
RMB 87,200 to purchase poverty alleviation products. It has also selected a Party member to Shangyan Village,
Chengtian Town, Shantou, a front-line rural area starting from 2021 to assist in rural revitalization work, serving
for three years so far.
25
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Section VI Important Matters
I. Commitments that have been fulfilled by the actual controllers, shareholders, related
parties, purchasers, and other relevant parties of the Company during the reporting period
and have not yet been fulfilled as of the end of the reporting period
Applicable □ Not applicable
Per
Commit Comm Comm
Commitment Commitm for
ment itment Commitment content itment
cause ent time ma
party type period
nce
Durin
g the
period
of
The Company will maintain the independence of the being
listed company and maintain personnel independence, the
Ensure
institutional independence, financial independence, and indire
Shenzhe the
asset integrity with the listed company. The listed ct In
n indepe
company will still have independent operation ability, contro per
Investme ndenc December
independent procurement, production, and sales system, lling for
nt e of 30, 2022
and independent intellectual property rights. shareh ma
Holdings listed
In case of violation of the above commitments, the older nce
Co., Ltd. compa
Company will bear corresponding legal responsibilities, of
nies
including but not limited to compensation for all losses Tellus
caused to the listed company. Holdi
ng, a
listed
compa
Commitment ny
made in 1. As of the signing date of this Letter of Commitment,
acquisition the Company and other enterprises controlled by the
report or report Company have not engaged in business and activities that Durin
of equity are in direct competition with or may constitute direct g the
change competition with Tellus and will not engage in business period
and activities that are in direct competition with or may of
constitute direct competition with Tellus in the future being
(except those arranged based on Shenzhen SASAC or the
similar government agencies); indire
Shenzhe
Avoid 2. During the period of being the indirect controlling ct In
n
horizo shareholder of Tellus and during Tellus' listing on the contro per
Investme December
ntal Shenzhen Stock Exchange, the Company will fully lling for
nt 30, 2022
compe respect the independent operation autonomy of all shareh ma
Holdings
tition subsidiaries controlled by the Company and ensure that older nce
Co., Ltd.
the legitimate rights and interests of Tellus and its of
minority shareholders will not be infringed; Tellus
3. The Company promises not to seek illegitimate Holdi
interests with the status of controlling shareholder of ng, a
Tellus, thus damaging the rights and interests of Tellus listed
and its minority shareholders; compa
4. The Company promises not to assist any party to ny
engage in any business activities that are in substantial
competition or potential competition with the main
26
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
business of Tellus by using the information learned or
known from Tellus;
5. If the Company or other enterprises controlled by the
Company violate the above commitments and guarantees,
the Company shall bear the economic losses caused to the
listed company.
1. The Company and the companies, enterprises, and
economic organizations controlled or actually controlled
by the Company (excluding enterprises controlled by
listed companies, hereinafter collectively referred to as
"affiliated companies") will exercise the rights of
shareholders, fulfill the obligations of shareholders, and
maintain the independence of listed companies in terms of
assets, finance, personnel, business, and institutions in
strict accordance with the provisions of laws, regulations,
and other normative documents;
2. The Company promises not to use its position as a
Durin
controlling shareholder to urge the General Meeting of
g the
Shareholders or the Board of Directors of the listed
period
company to make resolutions that infringe upon the
of
legitimate rights and interests of other shareholders of the
being
listed company;
the
Reduc 3. The Company or its affiliated companies will try to
indire
Shenzhe e and avoid related party transactions with listed companies. If
ct In
n standa it is inevitable to have related party transactions with
contro per
Investme rdize listed companies, the Company or its affiliated companies December
lling for
nt related will urge the controlled entities to trade with listed 30, 2022
shareh ma
Holdings party companies on an equal and voluntary basis per fair,
older nce
Co., Ltd. transa reasonable, and normal commercial transaction
of
ctions conditions;
Tellus
4. The Company or its subsidiaries will strictly adhere to
Holdi
the decision-making procedures for related-party
ng, a
transactions and the corresponding information disclosure
listed
obligations as stipulated in the articles of association of
compa
the listed company and relevant laws and regulations; 5.
ny
The Company or its affiliated companies will ensure that
they will not seek special interests beyond the above
provisions through related party transactions with the
listed company, illegally transfer the funds and profits of
the listed company through related party transactions, or
maliciously damage the legitimate rights and interests of
the listed company and its shareholders through related
party transactions. In case of violation of the above
commitments, the Company will bear corresponding legal
responsibilities, including but not limited to compensation
for all losses caused to the listed company.
SHENZE
Commitment In
N In the future, the Company will disclose relevant
made during per
TELLUS information regarding the progress of its new business in October Long
the initial Others for
HOLDIN a timely, accurate, and sufficient manner per relevant 17, 2014 term
public offering ma
G CO., requirements.
or refinancing nce
LTD.
27
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Shenzhen Special Economic Zone Development Group
Co., Ltd., the controlling shareholder of the Company,
issued the Letter of Commitment to Avoiding Horizontal
Competition on May 26, 2014. The commitments are as
follows:
1. The Company and other enterprises controlled by the
Company other than Tellus Holding are not engaged in
business that is in substantial competition with the main
Shenzhe
business of Tellus Holding, and there is no horizontal
Other n Special
competition relationship with Tellus Holding; In
commitments Economi Horizo
2. The Company and its controlled enterprises will not, in per
made for c Zone ntal May 25, Long
any form, directly or indirectly engage in or participate in for
minority Develop compe 2014 term
business that competes or may compete with the main ma
shareholders of ment tition
business of Tellus Holding; 3. If the Company and other nce
the Company Group
enterprises controlled by the Company can engage in or
Co., Ltd.
participate in any business opportunity that may compete
with the main business of Tellus Holding, they shall
notify Tellus Holding of the above business opportunity
before implementing or signing relevant agreements. If
Tellus Holding makes a positive reply within a reasonable
period specified in the notice that it is willing to take
advantage of the business opportunity, the business
opportunity will be first offered to Tellus Holding.
From 2023 to 2025, the Company's profits will be first
used to cover the losses of previous years; after making
SHENZE
up for the losses of previous years, on the premise that the In
N Divide Dece
Company's profits and cash flow meet normal operations per
Other TELLUS nd April 27, mber
and long-term development, the Company will implement for
commitments HOLDIN commi 2023 31,
an active profit distribution method to return it to ma
G CO., tment 2025
shareholders. For details, please refer to the Shareholder nce
LTD.
Return Plan for the Next Three Years (2023-2025)
disclosed on www.cninfo.com.cn on April 27, 2023.
Whether the
commitments
Yes
are duly
performed?
If the
commitment is
not fulfilled
after the time
limit, the
specific reasons N/A
for the failure
of fulfillment
and the next
work plan shall
be specified.
II. Occupation of Non-Operating Funds of the Listed Company of Controlling Shareholder
and Other Related Parties
□ Applicable Not applicable
Non-operating fund occupied by the controlling shareholder and other related parties towards the listed company is not identified
within the reporting period of the Company.
28
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
III. Illegal External Guarantees
□ Applicable Not applicable
During the reporting period, the Company had no illegal external guarantees.
IV. Employment and Dismissal of Accounting Firms
Whether the Semi-Annual Financial Report has been audited?
□Yes No
The Semi-Annual Report of the Company is unaudited.
V. Description of the Board of Directors and the Board of Supervisors on the "Non-
Standard Auditor's Report" Issued by the Accounting Firm during the Reporting Period
□ Applicable Not applicable
VI. Description of the Board of Directors on the "Non-Standard Auditor's Report" of the
Previous Year
□ Applicable Not applicable
VII. Matters Relating to Bankruptcy Reorganization
□ Applicable Not applicable
Matters concerning bankruptcy reorganization were not identified within the reporting period of the Company.
VIII. Lawsuit Proceedings
Major litigation and arbitration matters
Applicable □ Not applicable
Progress
Amount Whether Execution of
Basic information of Disclo Disclo
involved estimated Litigation (arbitration) trial litigation
of litigation litigation sure sure
(RMB liabilities results and impacts (arbitration)
(arbitration) (arbitratio date index
10,000) are formed judgment
n)
The second-instance trial
took place on March 19,
2024, and the judgment for
Dispute over land
the second-instance trial has
lease contract (the
1,403.76 No Ongoing not yet been issued. At None
Company is the
present, the matter has not
plaintiff)
caused effects on the
Company's production and
operation.
Other contentious matters
□ Applicable Not applicable
29
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IX. Punishment and Rectification
□ Applicable Not applicable
No punishment or rectification was identified within the reporting period of the Company.
X. Integrity Situation of the Company and Its Controlling Shareholder and Actual
Controller
□ Applicable Not applicable
XI. Major Related Party Transactions
1. Related party transactions concerning daily operations
Applicable □ Not applicable
Prici Appr
Cont ng Price Propor oved Exce Settle Market
Type Amount
ent princ of tion to trans ed ment price of
of of
of iple related transa actio the metho availabl
Related relat related
relat of party ction n appr d of e Discl Disclos
transac Relatio ed party
ed relate transac amoun amo oved relate similar osure ure
tion nship party transact
party d tion t of unt amo d transact date index
party trans ion
trans party (RMB the (RM unt party ion
actio (RMB
actio trans 10,000 same B or transa (RMB
n 10,000)
n actio ) kind 10,0 not ction 10,000)
n 00)
Shenzh Accor
The Dail Prov
en ding
Compa y ide
Renfu to the
ny's relat prop Mark
Tellus contra Marc Annou
related ed erty et
Autom 272.50 272.5 1.88% 545 No ct 272.50 h 28, nceme
natural party leasi prici
obiles amou 2024 nt on
person trans ng ng
Service nt or Daily
and its actio servi
Co., agree Relate
director n ces
Ltd. ment d Party
Shenzh Transa
Accor
en Dail Prov ctions
ding
SDG Subsidi y ide in
to the
Tellus ary of relat prop Mark 2024
contra Marc
Propert controll ed erty et (Annou
8.69 8.69 0.06% 18 No ct 8.69 h 28,
y ing party leasi prici nceme
amou 2024
Manag shareho trans ng ng nt No.:
nt or
ement lder actio servi 2024-
agree
Co., n ces 009) of
ment
Ltd. Securit
Dail Prov Accor ies
Shenzh
Subsidi y ide ding Times
en
ary of relat prop Mark to the and
SDG Marc
controll ed erty et contra CNINF
Microfi 64.15 64.15 0.44% 503 No 64.15 h 28,
ing party leasi prici ct O
nance 2024
shareho trans ng ng amou
Co.,
lder actio and nt or
Ltd.
n man agree
30
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
age ment
ment
servi
ces
Prov
Shenzh ide Accor
Dail
en prop ding
Subsidi y
SDG erty to the
ary of relat Mark
Service leasi contra Marc
controll ed et
Co., ng 139.61 139.61 0.96% 542 No ct 139.61 h 28,
ing party prici
Ltd. and amou 2024
shareho trans ng
and its parki nt or
lder actio
branch ng agree
n
es servi ment
ces
The
Compa
ny's Prov Accor
Shenzh Dail
related ide ding
en y
natural brok to the
Telixin relat Mark
person erag contra Marc
g ed et
and the e and 30.00 30 3.78% 30 No ct 30.00 h 28,
Invest party prici
director agen amou 2024
ment trans ng
of a cy nt or
Co., actio
joint servi agree
Ltd. n
stock ces ment
compa
ny
Acce
Shenzh Accor
Dail pt
en ding
Subsidi y engi
SDG to the
ary of relat neeri Mark
Engine contra Marc
controll ed ng et 100.00
ering 12.00 12 140 No ct 12.00 h 28,
ing party supe prici %
Manag amou 2024
shareho trans rvisi ng
ement nt or
lder actio on
Co., agree
n servi
Ltd. ment
ces
Acce
pt
Shenzh Accor
Dail prop
en ding
Subsidi y erty
SDG to the
ary of relat man Mark
Service contra Marc
controll ed age et 1,071. 1,071. 90.15 4,02
Co., No ct 1071.77 h 28,
ing party ment prici 77 77 % 2
Ltd. amou 2024
shareho trans and ng
and its nt or
lder actio secur
branch agree
n ity
es ment
servi
ces
Shenzh Dail Acce Accor
en Subsidi y pt ding
SDG ary of relat prop Mark to the
Marc
Tellus controll ed erty et contra
92.35 92.35 7.77% 198 No 92.35 h 28,
Propert ing party man prici ct
2024
y shareho trans age ng amou
Manag lder actio ment nt or
ement n servi agree
31
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Co., ces ment
Ltd.
Shenzh Acce Accor
Dail
en pt ding
Subsidi y
SDG prop to the
ary of relat Mark
Buildin erty contra Marc
controll ed et
g man 14.40 14.4 1.21% 0 Yes ct 14.40 h 28,
ing party prici
Techno age amou 2024
shareho trans ng
logy ment nt or
lder actio
Co., servi agree
n
Ltd. ces ment
Enterpr Accor
Guoren Dail
ise ding
Propert y Acce
controll to the
y & relat pt Mark
ed by contra Marc
Casualt ed insur et 90.84
indirect 24.68 24.68 80 No ct 24.68 h 28,
y party ance prici %
controll amou 2024
Insuran trans servi ng
ing nt or
ce Co., actio ces
shareho agree
Ltd. n
lders ment
Accor
ISSTec Dail
ding
h Subsidi y Acce
to the
Inform ary of relat pt Mark
contra Marc
ation controll ed tech et
- 152 No ct 0.00 h 28,
Techno ing party nical prici
amou 2024
logy shareho trans servi ng
nt or
Co., lder actio ces
agree
Ltd. n
ment
1,730.1 6,23
Total -- -- -- -- -- -- -- --
5 0
Details of large-sum sales return None
The actual performance during the
reporting period (if any) if the total
amount of daily related party
Normal performance
transactions occurring in the
current period is estimated by
category
Reasons for the great difference
between the transaction price and
N/A
market reference price (if
applicable)
2. Related party transactions from acquisition and sale of assets or equity
□ Applicable Not applicable
During the reporting period, the Company had no related party transaction from the acquisition and sale of assets or equity.
3. Related party transaction of joint outbound investment
□ Applicable Not applicable
During the reporting period, the Company had no related party transaction of joint outbound investment.
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4. Transaction related to credit and debt
Applicable □ Not applicable
Whether there are transactions of non-operating related credits and debts
□Yes No
During the reporting period, the Company had no transactions related to credit and debt.
5. Transactions with related finance companies
□ Applicable Not applicable
There is no deposit, loan, credit, or other financial business between the Company and related finance companies and related
parties.
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable Not applicable
There is no deposit, loan, credit, or other financial business between the finance companies controlled by the Company and related
parties.
7. Other major related party transactions
□ Applicable Not applicable
During the reporting period, the Company had no other major related party transactions.
XII. Major Contracts and Performance
1. Trusteeship, contracting, and leasing matters
(1) Trusteeship
□ Applicable Not applicable
During the reporting period, the Company had no trusteeship.
(2) Contracting
□ Applicable Not applicable
During the reporting period, the Company had no contracting.
(3) Leasing
□ Applicable Not applicable
During the reporting period, the Company had no leasing.
2. Significant guarantees
Applicable □ Not applicable
Unit: RMB 10,000
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External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries)
Disclosure
date of the Whether
relevant Actual Actual Wheth it is
Name of Guaran Type of Counter-
announce date of guarante Collatera Guarantee er it is provided
guarante tee guarante guarante
ment of occurren e l (if any) period fulfille to
ed party amount e e (if any)
the ce amount d related
guarantee parties
amount
Shenzhe
Before the
n Renfu
expiration
Tellus
September March of the
Automo 3,500 0 Pledge No No No Yes
30, 2014 15, 2022 joint
biles
venture
Service
contract
Co., Ltd.
Total external Total actual external
guarantee amount guarantee amount
0 0
approved during the during the reporting
reporting period (A1) period (A2)
Total external
Total actual external
guarantee amount
guarantee balance at
approved at the end of 3,500 0
the end of reporting
the reporting period
period (A4)
(A3)
The Company's guarantee to subsidiaries
Disclosure
date of the Whether
relevant Actual Actual Wheth it is
Name of Guaran Type of Counter-
announce date of guarante Collatera Guarantee er it is provided
guarante tee guarante guarante
ment of occurren e l (if any) period fulfille to
ed party amount e e (if any)
the ce amount d related
guarantee parties
amount
Guarantee between subsidiaries
Disclosure
date of the Whether
relevant Actual Actual Wheth it is
Name of Guaran Type of Counter-
announce date of guarante Collatera Guarantee er it is provided
guarante tee guarante guarante
ment of occurren e l (if any) period fulfille to
ed party amount e e (if any)
the ce amount d related
guarantee parties
amount
Total amount of the Company's guarantee (i.e. total of the first three items)
Total actual
Total guarantee
guarantee amount
amount approved
0 during the reporting 0
during the reporting
period (A2 + B2 +
period (A1 + B1 + C1)
C2)
Total guarantee Total actual
amount approved at guarantee balance at
the end of the 3,500 the end of the 0
reporting period (A3 + reporting period (A4
B3 + C3) + B4 + C4)
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Proportion of total actual guarantee amount
(i.e. A4 + B4 + C4) to the Company's net 0.00%
assets
Including:
Specific description of the composite guarantee
3. Entrusted financial management
Applicable □ Not applicable
Unit: RMB 10,000
The amount of
impairment
accrued for
Capital source of Amount of
Unexpired Overdue overdue
Category entrusted financial entrusted financial
balance unrecovered amount unrecovered
management management
financial
management
products
Bank financial
Self-owned funds 52,900 52,900 0 0
products
Total 52,900 52,900 0 0
Details of high-risk entrusted financial management with large individual amount or low security and poor liquidity
□ Applicable Not applicable
Principal unable to be recovered or other conditions causing impairment for entrusted financial management
□ Applicable Not applicable
4. Other major contracts
□ Applicable Not applicable
During the reporting period, the Company had no other major contracts.
XIII. Description of Other Major Matters
□ Applicable Not applicable
The Company had no other major matters that needed to be stated during the reporting period.
XIV. Major Matters of the Company’s Subsidiaries
□ Applicable Not applicable
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Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase (+)/decrease (-) in this change After the change
Conver
sion of
Issuan Shar
the
Proporti ce of e Othe Subt Proporti
Quantity reserve Quantity
on new dona rs otal on
d funds
shares tion
into
shares
I. Shares with Restrictions
0 0.00% 0 0 0 0 0 0 0.00%
on Sale
1. State shareholding 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
0 0.00% 0 0 0 0 0 0 0.00%
person shareholding
3. Other domestic
0 0.00% 0 0 0 0 0 0 0.00%
shareholding
Including: Domestic
0 0.00% 0 0 0 0 0 0 0.00%
legal person shareholding
Domestic natural
0 0.00% 0 0 0 0 0 0 0.00%
person shareholding
4. Foreign shareholding 0 0.00% 0 0 0 0 0 0 0.00%
Including: Foreign
0 0.00% 0 0 0 0 0 0 0.00%
legal person shareholding
Foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person shareholding
II. Shares without 100.00 100.00
431,058,320 0 0 0 0 0 431,058,320
Restrictions on Sales % %
1. RMB-denominated
392,778,320 91.12% 0 0 0 0 0 392,778,320 91.12%
ordinary shares
2. Domestic listed
38,280,000 8.88% 0 0 0 0 0 38,280,000 8.88%
foreign shares
3. Foreign listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00 100.00
III. Total amount of shares 431,058,320 0 0 0 0 0 431,058,320
% %
Reasons for changes in shares
□ Applicable Not applicable
Status of authorization for changes in shares
□ Applicable Not applicable
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Status of transfer for changes in shares
□ Applicable Not applicable
Progress in the implementation of share repurchase
□ Applicable Not applicable
Progress in the implementation of share repurchase reduction through centralized bidding
□ Applicable Not applicable
Effect of changes in shares on the financial indicators including basic earnings per share and diluted earnings per share in the most
recent year and in the most recent period as well as net asset per share attributable to the Company's shareholders of ordinary
shares
□ Applicable Not applicable
Other information disclosed as the Company deems necessary or required by securities regulatory authorities
□ Applicable Not applicable
2. Changes in shares with restrictions on sale
□ Applicable Not applicable
II. Conditions on Issuance and Listing of Securities
□ Applicable Not applicable
III. Number of Shareholders of the Company and Their Shareholding Conditions
Unit: share
Total number of ordinary share Total number of preferred share shareholders
shareholders as at the end of the 54,345 (if any) with restored voting rights as at the 0
reporting period end of the reporting period (see Note 8)
Shareholders holding more than 5% of ordinary shares or shareholdings of top 10 shareholders of ordinary shares (excluding shares
lent through refinancing)
Number of Number of Pledged, marked,
Increase/dec Number of
Shareho ordinary ordinary or frozen shares
Nature of rease during ordinary
Name of lding shares held at shares
sharehold the shares with
shareholder proporti the end of the without Status of Qua
er reporting restrictions
on reporting restrictions shares ntity
period on sale held
period on sale held
Shenzhen Special State-
Economic Zone owned
49.09% 211,591,621 1,200,000 0 211,591,621 N/A 0
Development Group legal
Co., Ltd. person
Shenzhen Capital Domestic
Fortune Jewelry non-state-
Industry Investment owned 5.08% 21,919,153 0 0 21,919,153 N/A 0
Enterprise (Limited legal
Partnership) person
Domestic
Li Xiaoming natural 0.71% 3,069,500 0 0 3,069,500 N/A 0
person
Industrial and
Commercial Bank Others 0.46% 1,983,775 465,100 0 1,983,775 N/A 0
of China Limited—
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China Southern CSI
All Share Real
Estate ETF
GUOTAI JUNAN
Overseas
SECURITIES
legal 0.40% 1,741,491 0 0 1,741,491 N/A 0
(HONGKONG)
person
LIMITED
Overseas
Wang Hua natural 0.24% 1,020,024 1,020,024 0 1,020,024 N/A 0
person
Domestic
Shang Fusheng natural 0.21% 902,045 902,045 0 902,045 N/A 0
person
Industrial and
Commercial Bank
of China Limited— Others 0.21% 894,845 651,545 0 894,845 N/A 0
China Southern CSI
1000 ETF
Domestic
Ma Yongcheng natural 0.20% 868,000 228,700 0 868,000 N/A 0
person
Hong Kong Overseas
Securities Clearing legal 0.19% 838,870 -1,341,789 0 838,870 N/A 0
Company Limited person
Status of the strategic investor or
general legal person becoming
one of the top 10 ordinary None
shareholders due to equity
offering (if any) (see Note 3)
Among the top 10 shareholders, Shenzhen Special Economic Zone Development Group Co.,
Explanations of the related
Ltd. was not related to other shareholders and was not a person acting in concert as stipulated
relationship or concerted action
in the Measures for the Administration of the Takeover of Listed Companies. It was unknown
of the above shareholders
whether other shareholders of tradable shares were persons acting in concert.
Description of the above-
mentioned shareholders'
involvement in entrusting/being N/A
entrusted with the right to vote
and giving up the right
Special description of repurchase
special account among the top 10
None
shareholders (if any) (see Note
11)
Shareholdings of top 10 shareholders of ordinary shares (excluding shares lent through refinancing and locked shares of senior
executives)
Share type
Number of ordinary shares without restrictions on sale as of
Name of shareholder Qua
the end of the reporting period Share type
ntity
Common shares
Shenzhen Special Economic Zone
211,591,621 denominated in 0
Development Group Co., Ltd.
RMB
Shenzhen Capital Fortune Jewelry Common shares
Industry Investment Enterprise 21,919,153 denominated in 0
(Limited Partnership) RMB
Common shares
Li Xiaoming 3,069,500 0
denominated in
38
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RMB
Industrial and Commercial Bank of Common shares
China Limited—China Southern CSI 1,983,775 denominated in 0
All Share Real Estate ETF RMB
GUOTAI JUNAN SECURITIES Domestic listed
1,741,491 0
(HONGKONG) LIMITED foreign shares
Domestic listed
Wang Hua 1,020,024 0
foreign shares
Common shares
Shang Fusheng 902,045 denominated in 0
RMB
Industrial and Commercial Bank of Common shares
China Limited—China Southern CSI 894,845 denominated in 0
1000 ETF RMB
Common shares
Ma Yongcheng 868,000 denominated in 0
RMB
Common shares
Hong Kong Securities Clearing
838,870 denominated in 0
Company Limited
RMB
Description of the related
relationship or acting in concert
Among the top 10 shareholders, Shenzhen Special Economic Zone Development Group
among the top 10 ordinary
Co., Ltd., a state-owned legal-person shareholder, was not related to other shareholders and
shareholders without trading limited
was not a person acting in concert as stipulated in the Measures for the Administration of
conditions, and between the top 10
the Takeover of Listed Companies. It was unknown whether other shareholders of tradable
ordinary shareholders without
shares were persons acting in concert.
trading limited conditions and the
top 10 ordinary shareholders
Description of participation of the
The shareholder Shang Fusheng holds 449,700 shares of the Company through guaranteed
top 10 shareholders of ordinary
credit accounts and 452,345 shares of the Company through ordinary securities accounts,
shares in securities margin trading
totaling 902,045 shares.
(if any) (see Note 4)
The situation of shareholders holding more than 5% of shares, the top 10 shareholders, and the top 10 shareholders with unlimited
tradable shares participating in the loan of shares in the refinancing business
Applicable □ Not applicable
Unit: share
The situation of shareholders holding more than 5% of shares, the top 10 shareholders, and the top 10 shareholders with unlimited
tradable shares participating in the loan of shares in the refinancing business
Ordinary account and Shares lent through Shares lent through
Ordinary account and credit
credit account refinancing at the refinancing at the
account shareholding at the
shareholding at the beginning of the period end of the period and
Name of end of the period
beginning of the period and not yet returned not yet returned
shareholder
(full name) Proportio Proportio Proportion Proportio
Total n in total Total n in total in total Total n in total
Total quantity
quantity share quantity share share quantity share
capital capital capital capital
Shenzhen
Special
Economic Zone 210,391,621 48.81% 1,200,000 0.28% 211,591,621 49.09% 0 0.00%
Development
Group Co., Ltd.
Industrial and
Commercial 243,300 0.06% 54,600 0.01% 894,845 0.21% 24,600 0.01%
Bank of China
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Limited—China
Southern CSI
1000 ETF
Changes from the previous period caused by the top 10 shareholders and the top 10 shareholders of unlimited tradable shares due
to refinancing-based lending/returning
□ Applicable Not applicable
Whether the Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions
on sale performed the agreed repurchase transactions during the reporting period
□Yes No
The Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions on sale
did not perform the agreed repurchase transactions during the reporting period.
IV. Changes in Shareholdings of Directors, Supervisors, and Senior Executives
□ Applicable Not applicable
There was no change in the shareholding of directors, supervisors, and senior executives during the reporting period. Please refer
to the 2023 Annual Report for details.
V. Change of the Controlling Shareholder or Actual Controller
Change in the controlling shareholder during the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no change in the controlling shareholder.
Change in the actual controller during the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no change in the actual controller.
40
Full Text of the 2024 Semi-annual Report of SHENZEN TELLUS HOLDING CO., LTD.
Section VIII Preferred Shares
□ Applicable Not applicable
During the reporting period, the Company had no preferred shares.
41
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Section IX Bonds
□ Applicable Not applicable
42
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Section X Financial Report
I. Auditor's Report
Whether the Semi-Annual Report has been audited
□Yes No
The Semi-Annual Financial Report of the Company has not been audited.
II. Financial Statements
The unit of measurement for the statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: SHENZEN TELLUS HOLDING CO., LTD.
June 30, 2024
Unit: RMB
Item Period-end balance Period-beginning balance
Current assets:
Cash at bank and on hand 228,605,222.29 220,340,961.64
Settlement reserve fund
Lendings to banks and other financial
institutions
Trading financial assets 377,514,483.03 206,294,931.94
Derivative financial assets 298,320.00
Notes receivable
Accounts receivable 197,419,232.54 99,635,751.52
Receivables financing
Prepayment 1,323,763.51 38,454,434.90
Premiums receivable
Reinsurance account receivables
Capital reserves receivable from
reinsurance contracts
Other receivables 26,387,609.87 12,383,516.92
Including: Interest receivable
Dividends receivable 1,305,581.86 1,305,581.86
Financial assets purchased under
agreements to resell
Inventories 92,137,538.10 178,425,833.88
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 25,510,300.00 55,206,250.00
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Other current assets 30,394,430.19 104,833,797.59
Total current assets 979,292,579.53 915,873,798.39
Non-current assets:
Loans and advances issued
Debt investments
Other creditor's rights investment 105,986,078.92 67,627,948.60
Long-term receivables
Long-term equity investment 81,390,604.97 76,511,487.57
Other equity instrument investments 383,317.67 383,317.67
Other non-current financial assets
Investment properties 992,091,283.53 1,008,137,341.80
Fixed assets 74,890,303.79 78,935,843.49
Construction in progress 15,159,796.57 7,279,570.05
Productive biological assets
Oil and gas assets
Right-of-use assets 67,177,997.92 71,904,716.50
Intangible assets 4,007,937.65 3,915,770.61
Including: Data resources
Development expenses
Including: Data resources
Goodwill
Long-term deferred expenses 40,462,492.20 38,392,179.02
Deferred tax assets 35,941,610.71 37,836,657.43
Other non-current assets 96,444,678.01 97,053,053.32
Total non-current assets 1,513,936,101.94 1,487,977,886.06
Total assets 2,493,228,681.47 2,403,851,684.45
Current liabilities:
Short-term borrowings 160,119,111.11 145,131,694.44
Borrowings from the central bank
Loans from other banks and other
financial institutions
Trading financial liabilities 36,858,570.74 56,881,954.76
Derivative financial liabilities 575,060.00 1,380.00
Notes payable 28,000,000.00
Accounts payable 124,603,804.95 135,834,414.39
Advances from customers 9,428,923.84 4,306,567.65
Contract liabilities 5,509,635.75 7,079,975.38
Financial assets sold under agreements
to repurchase
Deposits from customers and
interbanks
Acting trading securities
Acting underwriting securities
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Employee compensation payable 37,843,857.27 33,425,356.15
Taxes payable 33,252,332.29 28,857,448.06
Other payables 132,054,687.73 126,826,966.60
Including: Interest payable
Dividends payable
Handling charges and commission
payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
7,155,499.75 7,304,647.32
liabilities
Other current liabilities 3,172,726.99 3,388,998.35
Total current liabilities 578,574,210.42 549,039,403.10
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 64,188,913.70 69,524,214.23
Long-term payables 3,920,160.36 3,920,160.36
Long-term employee compensation
payable
Estimated liabilities 268,414.80 268,414.80
Deferred income 8,737,537.71 9,617,683.53
Deferred tax liabilities 40,320,590.34 40,409,890.41
Other non-current liabilities
Total non-current liabilities 117,435,616.91 123,740,363.33
Total liabilities 696,009,827.33 672,779,766.43
Owners' equity:
Share capital 431,058,320.00 431,058,320.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 430,866,408.50 430,866,408.50
Less: Treasury shares
Other comprehensive income -7,318,552.65 -7,318,552.65
Special reserves
Surplus reserves 63,956,286.46 63,956,286.46
General risk reserve
Undistributed profit 748,642,264.39 685,342,592.62
Total equity attributable to owners of the
1,667,204,726.70 1,603,905,054.93
parent company
Minority interests 130,014,127.44 127,166,863.09
Total owners' equity 1,797,218,854.14 1,731,071,918.02
Total liabilities and owner's equity 2,493,228,681.47 2,403,851,684.45
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm:
45
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Yu Taiping
2. Parent Company's Balance Sheet
Unit: RMB
Item Period-end balance Period-beginning balance
Current assets:
Cash at bank and on hand 7,999,390.25 8,805,213.07
Trading financial assets 236,071,464.39 205,942,363.02
Derivative financial assets
Notes receivable
Accounts receivable 21,427,362.90 22,080,192.24
Receivables financing
Prepayment 109.81 16,240.74
Other receivables 56,368,045.13 47,432,527.04
Including: Interest receivable
Dividends receivable 1,305,581.86 1,305,581.86
Inventories
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 25,510,300.00
Other current assets 75,546,888.89
Total current assets 347,376,672.48 359,823,425.00
Non-current assets:
Debt investments
Other creditor's rights investment 85,109,745.59 47,081,615.27
Long-term receivables
Long-term equity investment 773,092,452.61 770,687,026.69
Other equity instrument investments 383,317.67 383,317.67
Other non-current financial assets
Investment properties 537,661,376.75 545,303,744.96
Fixed assets 14,506,158.01 15,211,321.18
Construction in progress 3,625,167.12 589,761.00
Productive biological assets
Oil and gas assets
Right-of-use assets 70,752,693.08 74,533,199.59
Intangible assets 2,402,136.95 2,559,885.65
Including: Data resources
Development expenses
Including: Data resources
Goodwill
Long-term deferred expenses 23,444,497.31 21,243,445.23
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Deferred tax assets 29,878,606.40 31,956,786.10
Other non-current assets 68,972,373.00 69,580,748.31
Total non-current assets 1,609,828,524.49 1,579,130,851.65
Total assets 1,957,205,196.97 1,938,954,276.65
Current liabilities:
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 65,860,382.55 71,449,469.14
Advances from customers 2,197,608.80 1,060,721.19
Contract liabilities
Employee compensation payable 32,502,750.22 27,402,400.00
Taxes payable 13,512,206.82 13,335,268.63
Other payables 202,257,793.39 271,180,563.27
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Current portion of non-current
6,706,250.92 6,706,250.92
liabilities
Other current liabilities 1,810,007.31 1,810,007.31
Total current liabilities 324,847,000.01 392,944,680.46
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 69,804,336.84 72,936,147.42
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income
Deferred tax liabilities 40,269,279.16 40,269,279.16
Other non-current liabilities
Total non-current liabilities 110,073,616.00 113,205,426.58
Total liabilities 434,920,616.01 506,150,107.04
Owners' equity:
Share capital 431,058,320.00 431,058,320.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 428,256,131.23 428,256,131.23
Less: Treasury shares
Other comprehensive income -7,344,974.65 -7,344,974.65
47
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Special reserves
Surplus reserves 63,956,286.46 63,956,286.46
Undistributed profit 606,358,817.92 516,878,406.57
Total owners' equity 1,522,284,580.96 1,432,804,169.61
Total liabilities and owner's equity 1,957,205,196.97 1,938,954,276.65
3. Consolidated Income Statement
Unit: RMB
Item The first half of 2024 The first half of 2023
I. Total Operating Revenue 1,580,023,748.85 704,836,410.94
Including: Operating revenue 1,580,023,748.85 704,836,410.94
Interest income
Earned premium
Service charges and
commission incomes
II. Total Operating Cost 1,498,402,354.66 655,633,026.03
Including: Operating cost 1,451,925,990.76 608,604,638.40
Interest expenses
Service charges and
commission expenses
Surrender value
Net payments for insurance
claims
Net provision for insurance
liability reserves
Bond insurance expense
Reinsurance expenses
Taxes and surcharges 7,022,914.20 4,855,726.45
Selling expenses 10,655,583.07 11,963,099.01
Administrative expenses 23,758,940.40 28,817,829.38
R&D expenses 1,353,032.80
Financial expenses 3,685,893.43 1,391,732.79
Including: Interest expenses 5,197,620.36 3,437,880.65
Interest income 2,112,971.50 1,835,834.14
Add: Other incomes 5,680,047.59 4,475,465.94
Investment incomes (loss to be
14,706,604.25 8,923,017.80
listed with "-")
Including: Income from
investment in associates and joint 20,511,753.40 3,011,611.29
ventures
Income from
derecognition of financial assets at
amortized cost
Exchange income (loss to be
listed with "-")
Net exposure hedging income
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(losses to be listed with "-")
Income from changes in fair
-2,981,593.36 -5,265,810.16
value (losses to be listed with "-")
Credit impairment loss (loss to be
-857,544.91 6,669.80
listed with "-")
Asset impairment loss (loss to be
-3,700.50
listed with "-")
Income from assets disposal (loss
-227.20 -81,800.45
to be listed with "-")
III. Operating Profit (loss to be listed
98,168,680.56 57,257,227.34
with "-")
Add: Non-operating revenue 1,112,033.25 417,182.13
Less: Non-operating expenses 107,338.47 119,683.12
IV. Total Profit (total loss to be listed
99,173,375.34 57,554,726.35
with "-")
Less: Income tax expenses 19,663,631.30 12,466,659.92
V. Net profit (net loss to be listed with "-
79,509,744.04 45,088,066.43
")
(I) Classified by continuity of
operations
1. Net profit from continuing
79,509,744.04 45,088,066.43
operations (net loss to be listed with "-")
2. Net profit from discontinued
operations (net loss to be listed with "-")
(II) Classified by attribution of
ownership
1. Net profit (or loss) attributable to
76,662,479.69 44,139,962.93
shareholders of the parent company
2. Minority interest income (net loss
2,847,264.35 948,103.50
to be listed with "-")
VI. Net Amounts after Tax of Other
Comprehensive Income
Net after-tax amounts of other
comprehensive income attributable to the
owner of the parent company
(I) Other comprehensive income
that cannot be reclassified into profit and
loss
1. Changes arising from the
remeasurement of the defined benefit
plan
2. Other comprehensive income
that cannot be reclassified into profit or
loss under the equity method
3. Changes in the fair value of
other equity instrument investments
4. Changes in fair value of the
company's own credit risk
5. Others
(II) Other comprehensive income to
be reclassified into profit or loss
1. Other comprehensive income
that can be reclassified into profit or loss
under the equity method
49
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2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Reserves for credit impairment
in other creditors' investments
5. Reserves for cash flow hedge
6. Differences from the
translation of foreign currency financial
statements
7. Others
Net after-tax amount of other
comprehensive income attributable to
minority shareholders
VII. Total Comprehensive Income 79,509,744.04 45,088,066.43
Total comprehensive income
attributable to the owner of the parent 76,662,479.69 44,139,962.93
company
Total comprehensive income
2,847,264.35 948,103.50
attributable to minority shareholders
VIII. Earnings per Share:
(I) Basic earnings per share 0.1778 0.1024
(II) Diluted earnings per share 0.1778 0.1024
In the case of a business merger under common control in the current period, the net profit realized by the merged party before the
merger is RMB and the net profit realized by the merged party in the previous period is RMB .
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm:
Yu Taiping
4. Parent Company's Income Statement
Unit: RMB
Item The first half of 2024 The first half of 2023
I. Operating Revenue 55,668,957.83 34,050,043.81
Less: operating costs 21,857,801.26 14,948,857.82
Taxes and surcharges 666,504.17 98,447.27
Selling expenses 1,613,067.79 436,485.01
Administrative expenses 19,676,080.08 22,825,529.80
R&D expenses
Financial expenses 314,066.15 1,078,785.57
Including: Interest expenses 1,410,977.14 1,763,223.12
Interest income 1,152,266.18 691,617.24
Add: Other incomes 60,704.40
Investment incomes (loss to be
94,855,787.41 10,449,577.73
listed with "-")
Including: Income from
investment in associates and joint 19,879,117.40 3,011,611.29
ventures
Income from
derecognition of financial assets
measured at amortized cost (loss to be
50
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listed with "-")
Net exposure hedging income
(losses to be listed with "-")
Income from changes in fair
129,101.37 -2,783,204.51
value (losses to be listed with "-")
Credit impairment loss (loss to be
listed with "-")
Asset impairment loss (loss to be
listed with "-")
Income from assets disposal (loss
to be listed with "-")
II. Operating Profit (loss to be listed with
106,587,031.56 2,328,311.56
"-")
Add: Non-operating revenue 167,555.00 48,428.55
Less: Non-operating expenses 111,423.00
III. Total Profit (total losses to be listed
106,754,586.56 2,265,317.11
with "-")
Less: Income tax expenses 3,911,367.29
IV. Net Profit (net losses to be listed with
102,843,219.27 2,265,317.11
"-")
(I) Net profit from continuing
102,843,219.27 2,265,317.11
operations (net loss to be listed with "-")
(II) Net profit from discontinued
operations (net loss to be listed with "-")
V. Net Amount after Tax of Other
Comprehensive Income
(I) Other comprehensive income
that cannot be reclassified into profit and
loss
1. Changes arising from the
remeasurement of the defined benefit
plan
2. Other comprehensive income
that cannot be reclassified into profit or
loss under the equity method
3. Changes in the fair value of
other equity instrument investments
4. Changes in fair value of the
company's own credit risk
5. Others
(II) Other comprehensive income to
be reclassified into profit or loss
1. Other comprehensive income
that can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Reserves for credit impairment
in other creditors' investments
5. Reserves for cash flow hedge
6. Differences from the
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translation of foreign currency financial
statements
7. Others
VI. Total Comprehensive Income 102,843,219.27 2,265,317.11
VII. Earnings per Share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item The first half of 2024 The first half of 2023
I. Cash Flows from Operating Activities:
Cash received from sales of goods or
2,365,424,815.77 935,209,100.94
rendering of services
Net increase in deposits from
customers and placements from banks
and other financial institutions
Net increase in borrowings from the
central bank
Net increase in borrowings from other
financial institutions
Cash received from premiums of
original insurance contracts
Net amount of cash received from
reinsurance business
Net increase in deposits of the insured
and investments
Cash received from interests, handling
charges, and commissions
Net increase in loans from banks and
other financial institutions
Net increase of repurchasing business
funds
Net amount of cash received from
acting trading securities
Refund of taxes and surcharges
37,746.08 1,968,553.13
received
Other cash received relating to
110,631,913.79 167,102,933.78
operating activities
Subtotal of cash inflows from operating
2,476,094,475.64 1,104,280,587.85
activities
Cash paid for purchase of goods and
2,196,783,671.76 865,723,685.98
receipt of labor services
Net increase in customer loans and
advances
Net increase in deposits in the central
bank and other financial institutions
Cash paid for claim settlements on the
original insurance contract
Net increase in lending funds
Cash paid for interest, service charges,
and commission
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Cash paid for policy dividends
Cash paid to and on behalf of
24,123,668.90 39,083,559.60
employees
Various taxes paid 41,216,137.40 33,660,817.78
Other cash paid relating to operating
106,661,508.66 176,054,466.39
activities
Subtotal of cash outflows from operating
2,368,784,986.72 1,114,522,529.75
activities
Net cash flow from operating activities 107,309,488.92 -10,241,941.90
II. Cash Flow from Investing Activities:
Cash received from the return on
418,023,375.56 132,000,000.00
investment
Cash received from returns on
21,365,841.08 21,303,117.33
investments
Net cash received from the disposal of
fixed assets, intangible assets, and other 1,974.82 1,644,282.00
long-term assets
Net cash received from the disposal of
subsidiaries and other business units
Cash received relating to other
669,327.72 827,883.63
investing activities
Subtotal of cash inflows from investing
440,060,519.18 155,775,282.96
activities
Cash paid to acquire fixed assets,
intangible assets, and other long-term 14,170,382.92 50,769,515.45
assets
Cash paid for investments 554,236,930.32 370,000,000.00
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid relating to other investing
8,115,811.58 7,567,454.81
activities
Subtotal of cash outflows from
576,523,124.82 428,336,970.26
investment activities
Net cash flows from investing activities -136,462,605.64 -272,561,687.30
III. Cash Flow from Financing
Activities:
Cash received from absorbing
investment
Including: Cash received by
subsidiaries from absorbing investments
of minority shareholders
Cash received from borrowings 263,000,000.00 175,693,122.83
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
263,000,000.00 175,693,122.83
activities
Cash repayments of borrowings 220,000,000.00 13,535,116.94
Cash paid for distribution of
17,416,675.48 3,711,261.97
dividends, profits, or interest repayment
Including: Dividends and profits paid
by subsidiaries to minority shareholders
Cash paid relating to other financing
754,459.08 5,528,844.00
activities
Subtotal of cash outflows from financing
238,171,134.56 22,775,222.91
activities
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Net cash flows from financing activities 24,828,865.44 152,917,899.92
IV. Effect of Exchange Rate Changes on
578.35
Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-4,323,672.93 -129,885,729.28
Equivalents
Add: Opening balance of cash and
160,223,387.69 391,406,829.36
cash equivalents
VI. Closing Balance of Cash and Cash
155,899,714.76 261,521,100.08
Equivalents
6. Parent Company's Cash Flow Statement
Unit: RMB
Item The first half of 2024 The first half of 2023
I. Cash Flows from Operating Activities:
Cash received from sales of goods or
62,729,612.62 13,832,800.09
rendering of services
Refund of taxes and surcharges
received
Other cash received relating to
95,110,233.33 63,832,096.54
operating activities
Subtotal of cash inflows from operating
157,839,845.95 77,664,896.63
activities
Cash paid for purchase of goods and
16,964,957.26 2,170,256.29
receipt of labor services
Cash paid to and on behalf of
16,012,236.59 21,827,096.56
employees
Various taxes paid 4,315,386.13 4,568,154.92
Other cash paid relating to operating
97,680,119.77 9,260,460.69
activities
Subtotal of cash outflows from operating
134,972,699.75 37,825,968.46
activities
Net cash flow from operating activities 22,867,146.20 39,838,928.17
II. Cash Flow from Investing Activities:
Cash received from the return on
330,497,067.04 137,100,000.00
investment
Cash received from returns on
15,058,727.78 21,303,117.33
investments
Net cash received from the disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from the disposal of
subsidiaries and other business units
Cash received relating to other
46,628.16
investing activities
Subtotal of cash inflows from investing
345,555,794.82 158,449,745.49
activities
Cash paid to acquire fixed assets,
intangible assets, and other long-term 13,583,673.72 50,544,766.31
assets
Cash paid for investments 342,236,930.32 290,000,000.00
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid relating to other investing
activities
Subtotal of cash outflows from 355,820,604.04 340,544,766.31
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investment activities
Net cash flows from investing activities -10,264,809.22 -182,095,020.82
III. Cash Flow from Financing
Activities:
Cash received from absorbing
investment
Cash received from borrowings 25,693,122.83
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
25,693,122.83
activities
Cash repayments of borrowings 1,192,522.00
Cash paid for distribution of
13,408,159.80 2,711,261.96
dividends, profits, or interest repayment
Cash paid relating to other financing
activities
Subtotal of cash outflows from financing
13,408,159.80 3,903,783.96
activities
Net cash flows from financing activities -13,408,159.80 21,789,338.87
IV. Effect of Exchange Rate Changes on
Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-805,822.82 -120,466,753.78
Equivalents
Add: Opening balance of cash and
8,805,213.07 157,068,231.28
cash equivalents
VI. Closing Balance of Cash and Cash
7,999,390.25 36,601,477.50
Equivalents
7. Consolidated Statement of Changes in Owners' Equity
Amount in the current period
Unit: RMB
The first half of 2024
Owners' equity attributable to the parent company
Other equity Oth Tota
instruments Less er Und l
Gen Min
Item Shar Capi : com Spe Surp istri ority own
Pref Perp eral
e tal Trea preh cial lus bute Oth Subt inter ers'
erre etua risk
capi Oth rese sury ensi rese rese d ers otal ests equi
d l rese
tal ers rves shar ve rves rves prof ty
shar bon rve
es inco it
es ds me
I. Ending 431, 430, - 63,9 685, 1,60 127, 1,73
Balance of 058, 866, 7,31 56,2 342, 3,90 166, 1,07
the Previous 320. 408. 8,55 86.4 592. 5,05 863. 1,91
Year 00 50 2.65 6 62 4.93 09 8.02
Add:
Changes in
accounting
policies
Co
rrections of
errors in the
preliminary
55
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stage
Ot
hers
II. Beginning 431, 430, - 63,9 685, 1,60 127, 1,73
Balance of 058, 866, 7,31 56,2 342, 3,90 166, 1,07
the Current 320. 408. 8,55 86.4 592. 5,05 863. 1,91
Year 00 50 2.65 6 62 4.93 09 8.02
III.
Increase/Dec
rease in the 63,2 63,2 66,1
2,84
Current 99,6 99,6 46,9
7,26
Period 71.7 71.7 36.1
4.35
(decrease to 7 7 2
be listed with
"-")
76,6 76,6 79,5
(I) Total 2,84
62,4 62,4 09,7
comprehensi 7,26
79.6 79.6 44.0
ve income 4.35
9 9 4
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
by owners
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- - -
13,3 13,3 13,3
(III) Profit
62,8 62,8 62,8
distribution
07.9 07.9 07.9
2 2 2
1.
Appropriatio
n to surplus
reserve
2.
Appropriatio
n to general
risk
provision
3. - - -
56
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Distribution 13,3 13,3 13,3
to owners (or 62,8 62,8 62,8
shareholders) 07.9 07.9 07.9
2 2 2
4. Others
(IV) Internal
transfers of
owner's
equity
1.
Conversion
of capital
reserves into
paid-in
capital (or
share capital)
2.
Conversion
of surplus
reserve into
paid-in
capital (or
share capital)
3. Surplus
reserves to
cover losses
4. Retained
earnings
carried over
from changes
in defined
benefit plans
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserves
1.
Appropriatio
n in the
current
period
2. Amount
used in the
current
period
(VI) Others
IV. Ending 431, 430, - 63,9 748, 1,66 130, 1,79
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Balance of 058, 866, 7,31 56,2 642, 7,20 014, 7,21
the Current 320. 408. 8,55 86.4 264. 4,72 127. 8,85
Period 00 50 2.65 6 39 6.70 44 4.14
Amount in the previous year
Unit: RMB
The first half of 2023
Owners' equity attributable to the parent company
Other equity Oth Tota
instruments Less er Und Min l
Gen
Item Shar Capi : com Spe Surp istri ority own
Pref Perp eral
e tal Trea preh cial lus bute Oth Subt inter ers'
erre etua risk
capi Oth rese sury ensi rese rese d ers otal ests equi
d l rese
tal ers rves shar ve rves rves prof ty
shar bon rve
es inco it
es ds me
I. Ending 431, 431, 52,4 590, 1,50 150, 1,65
26,4
Balance of 058, 449, 99,1 605, 5,63 588, 6,22
22.0
the Previous 320. 554. 72.1 394. 8,86 880. 7,74
0
Year 00 51 3 67 3.31 59 3.90
Add:
Changes in
accounting
policies
Co
rrections of
errors in the
preliminary
stage
Ot
hers
II. Beginning 431, 431, 52,4 590, 1,50 150, 1,65
26,4
Balance of 058, 449, 99,1 605, 5,63 588, 6,22
22.0
the Current 320. 554. 72.1 394. 8,86 880. 7,74
0
Year 00 51 3 67 3.31 59 3.90
III.
Increase/Dec
-
rease in the 32,0 32,0 16,3
15,6
Current 70,3 70,3 92,9
77,3
Period 29.9 29.9 32.4
97.4
(decrease to 7 7 9
8
be listed with
"-")
44,1 44,1 45,0
(I) Total 948,
39,9 39,9 88,0
comprehensi 103.
62.9 62.9 66.4
ve income 50
3 3 3
(II) Capital - -
invested and 4,90 4,90
decreased by 0,00 0,00
owners 0.00 0.00
1. Ordinary - -
shares 4,90 4,90
58
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contributed 0,00 0,00
by owners 0.00 0.00
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- - -
12,0 12,0 12,0
(III) Profit
69,6 69,6 69,6
distribution
32.9 32.9 32.9
6 6 6
1.
Appropriatio
n to surplus
reserve
2.
Appropriatio
n to general
risk
provision
- - -
3.
12,0 12,0 12,0
Distribution
69,6 69,6 69,6
to owners (or
32.9 32.9 32.9
shareholders)
6 6 6
4. Others
(IV) Internal
transfers of
owner's
equity
1.
Conversion
of capital
reserves into
paid-in
capital (or
share capital)
2.
Conversion
of surplus
reserve into
paid-in
capital (or
share capital)
3. Surplus
reserves to
59
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cover losses
4. Retained
earnings
carried over
from changes
in defined
benefit plans
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserves
1.
Appropriatio
n in the
current
period
2. Amount
used in the
current
period
- -
11,7 11,7
(VI) Others 25,5 25,5
00.9 00.9
8 8
IV. Ending 431, 431, 52,4 622, 1,53 134, 1,67
26,4
Balance of 058, 449, 99,1 675, 7,70 911, 2,62
22.0
the Current 320. 554. 72.1 724. 9,19 483. 0,67
0
Period 00 51 3 64 3.28 11 6.39
8. Parent Company's Statement of Changes in Owners' Equity
Amount in the current period
Unit: RMB
The first half of 2024
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treas ehensi l s ribute owner
Others
capital red ual Others reserv ury ve reserv reserv d s'
shares bonds es shares incom es es profit equity
e
I. Ending -
431,0 428,2 63,95 516,8 1,432,
Balance of 7,344,
58,32 56,13 6,286. 78,40 804,1
the Previous 974.6
0.00 1.23 46 6.57 69.61
Year 5
Add:
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Changes in
accounting
policies
Co
rrections of
errors in the
preliminary
stage
Ot
hers
II. Beginning -
431,0 428,2 63,95 516,8 1,432,
Balance of 7,344,
58,32 56,13 6,286. 78,40 804,1
the Current 974.6
0.00 1.23 46 6.57 69.61
Year 5
III.
Increase/Dec
rease in the
89,48 89,48
Current
0,411. 0,411.
Period
35 35
(decrease to
be listed with
"-")
(I) Total 102,8 102,8
comprehensi 43,21 43,21
ve income 9.27 9.27
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
by owners
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- -
(III) Profit 13,36 13,36
distribution 2,807. 2,807.
92 92
1.
Appropriatio
n to surplus
reserve
61
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2. - -
Distribution 13,36 13,36
to owners (or 2,807. 2,807.
shareholders) 92 92
3. Others
(IV) Internal
transfers of
owner's
equity
1.
Conversion
of capital
reserves into
paid-in
capital (or
share capital)
2.
Conversion
of surplus
reserve into
paid-in
capital (or
share capital)
3. Surplus
reserves to
cover losses
4. Retained
earnings
carried over
from changes
in defined
benefit plans
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserves
1.
Appropriatio
n in the
current
period
2. Amount
used in the
current
period
(VI) Others
IV. Ending 431,0 428,2 - 63,95 606,3 1,522,
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Balance of 58,32 56,13 7,344, 6,286. 58,81 284,5
the Current 0.00 1.23 974.6 46 7.92 80.96
Period 5
Amount in the previous year
Unit: RMB
The first half of 2023
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treas ehensi l s ribute owner
Others
capital red ual Others reserv ury ve reserv reserv d s'
shares bonds es shares incom es es profit equity
e
I. Ending
431,0 428,2 52,49 425,8 1,337,
Balance of
58,32 56,13 9,172. 34,01 647,6
the Previous
0.00 1.23 13 0.57 33.93
Year
Add:
Changes in
accounting
policies
Co
rrections of
errors in the
preliminary
stage
Ot
hers
II. Beginning
431,0 428,2 52,49 425,8 1,337,
Balance of
58,32 56,13 9,172. 34,01 647,6
the Current
0.00 1.23 13 0.57 33.93
Year
III.
Increase/Dec
rease in the - -
Current 9,804, 9,804,
Period 315.8 315.8
(decrease to 5 5
be listed with
"-")
(I) Total 2,265, 2,265,
comprehensi 317.1 317.1
ve income 1 1
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
by owners
2. Capital
invested by
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holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- -
(III) Profit 12,06 12,06
distribution 9,632. 9,632.
96 96
1.
Appropriatio
n to surplus
reserve
2. - -
Distribution 12,06 12,06
to owners (or 9,632. 9,632.
shareholders) 96 96
3. Others
(IV) Internal
transfers of
owner's
equity
1.
Conversion
of capital
reserves into
paid-in
capital (or
share capital)
2.
Conversion
of surplus
reserve into
paid-in
capital (or
share capital)
3. Surplus
reserves to
cover losses
4. Retained
earnings
carried over
from changes
in defined
benefit plans
5. Retained
earnings
carried
forward from
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other
comprehensi
ve income
6. Others
(V) Special
reserves
1.
Appropriatio
n in the
current
period
2. Amount
used in the
current
period
(VI) Others
IV. Ending
431,0 428,2 52,49 416,0 1,327,
Balance of
58,32 56,13 9,172. 29,69 843,3
the Current
0.00 1.23 13 4.72 18.08
Period
III. Basic Information of the Company
SHENZEN TELLUS HOLDING CO., LTD. (hereinafter referred to as "the Company") is a limited liability
company registered in Shenzhen Administration for Industry and Commerce on November 10, 1986. The
Company was reorganized and established from the former Shenzhen Machinery Industry Company with the
approval through the Reply on the Reorganization of Shenzhen Machinery Industry Company into Shenzhen
Tellus Machinery Co., Ltd. (SFBF [1991] No. 1012) issued by the General Office of Shenzhen Municipal
People's Government. The Company currently holds a business license with a unified social credit code of
91440300192192210U, with a registered capital of RMB 431,058,320.00 and a total of 431,058,320 shares,
including 392,778,320 A shares and 38,280,000 B shares without trading restrictions on sale. The business
address of the Company's headquarters is 3-4/F, Tellus Building, 2nd Shuibei Road, Luohu District, Shenzhen.
The legal representative is Fu Chunlong.
In 1993, with the approval from the Reply on the Reorganization of Shenzhen Tellus Machinery Co., Ltd. into a
Public Limited Liability Company (SFBF [1992] No. 1850) issued by the General Office of Shenzhen
Municipal People's Government and the Reply on the Issuance of Shares by Shenzhen Tellus Machinery Electric
Co., Ltd. (SRYFZ [1993] No. 092) issued by Shenzhen Special Economic Zone Branch of the People's Bank of
China, the Company was reorganized into a public limited liability company through an initial public offering,
with a registered capital of RMB 166,880,000.00 and a total share capital of 166,880,000 shares. 120,900,000
shares were converted from former assets, 25,980,000 were issued as A shares, and 20,000,000 were issued as
B shares. Shares issued by the Company had a par value of RMB 1 per share. On June 21, 1993, the Company's
shares were listed and traded on the Shenzhen Stock Exchange.
According to the resolution of the Company's 1993 Annual General Meeting of Shareholders, based on the
share capital of 166,880,000 shares as of December 31 of that year, the Company distributed a cash dividend of
RMB 0.5 and issued 2 bonus shares to all shareholders for every 10 shares held, totaling 33,376,000 shares,
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which was implemented in 1994. After the share dividend, the registered capital was increased to RMB
200,256,000.00.
According to the resolution of the Company's 1994 Annual General Meeting of Shareholders, based on the
share capital of 200,256,000 shares as of December 31 of that year, the Company distributed a cash dividend of
RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held, with 0.5 additional shares,
totaling 20,025,600 shares, which was implemented in 1995. The registered capital was increased to RMB
220,281,600.00 after the share dividend and transfer.
According to the resolution of the Company's 1994 Annual General Meeting of Shareholders, based on the
share capital of 200,256,000 shares as of December 31 of that year, the Company distributed a cash dividend of
RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held, with 0.5 additional shares,
totaling 20,025,600 shares, which was implemented in 1995. The registered capital was increased to RMB
220,281,600.00 after the share dividend and transfer. According to the resolution of the 4th Extraordinary
General Meeting of Shareholders of the Company in 2014, upon the approval of the Reply to the Approval of
Non-public Offering of Shares by SHENZEN TELLUS HOLDING CO., LTD. (ZJXK [2015] No.173) issued by
the China Securities Regulatory Commission, the Company issued 77,000,000 ordinary A shares to Shenzhen
Special Economic Zone Development Group Co., Ltd. and Shenzhen Capital Fortune Jewelry Industry
Investment Enterprise (Limited Partnership) in 2015. After the issuance, the registered capital was increased to
RMB 297,281,600.00.
According to the resolution of the Company's 2018 Annual General Meeting of Shareholders, based on the
share capital of 297,281,600 shares as of December 31 of that year, the Company increased 4.5 shares for every
10 shares to all shareholders through capital reserves, totaling 133,776,720 shares, which was implemented in
2019. After the transfer, the registered capital was increased to RMB 431,058,320.00.
Main business activities: Property leasing and services, jewelry operations, etc.
The financial statements and notes to the financial statements were approved by the 12th Formal Meeting of the
10th Board of Directors on August 20, 2024.
IV. Preparation Fundamentals for Financial Statements
1. Preparation fundamentals
The Company prepared the financial statements according to Accounting Standards for Business Enterprises
issued by the Ministry of Finance as well as relevant application guidelines, interpretations, and other
provisions (hereinafter collectively referred to as "ASBE"). In addition, the Company also disclosed relevant
financial information per the Rules for the Preparation of Information Disclosure of Companies Issuing
Securities to the Public No.15 — General Provisions on Financial Reports (Revised in 2023) issued by the
CSRC.
2. Continuing operations
The financial statements have been prepared based on continuing operations.
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V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The Company has determined the policies for investment property depreciation, fixed asset depreciation, and
revenue recognition based on its own production and operational characteristics. Please see Notes 27 and 28 for
specific accounting policies.
1. Statement of compliance with ASBE
These financial statements comply with the requirements of ASBE and truly and completely reflect the
Company's merger and financial situation as of June 30, 2024, as well as the merger in the first half of 2024 and
its operating results, merger, cash flows, and other information.
2. Accounting period
The Company uses the calendar year as the accounting year, namely, from January 1 to June 30.
3. Business cycle
The business cycle of the Company is 6 months.
4. Bookkeeping base currency
The Company and its domestic subsidiaries take RMB as the bookkeeping base currency. The Company uses
RMB to prepare the financial statements.
5. Method of determining significance criteria and basis of selection
Applicable □ Not applicable
Item Significance criteria
Significant receivables with provision for bad debts drawn on a Amount ≥ RMB 1,000,000.00 or accounts for more than 1% of
single basis various receivables
Significant construction in progress The budget amount for a single project is ≥ 20,000,000.00
Accounts payable with a single account receivable age of more
than one year/other payables accounting for more than 1% of
Significant accounts payable and other payables
the total accounts payable, with an amount ≥ RMB
1,000,000.00
The total revenue from related parties accounts for more than
10% of the total revenue in the consolidated financial
Significant non-wholly-owned subsidiaries statements, or the absolute value of net profit accounts for more
than 10% of the net profit in the consolidated financial
statements.
Single investment activity accounts for more than 10% of the
Significant investing activities and projects total cash inflows or outflows related to investment activities,
or the outflows amount to ≥ RMB 100,000,000.00.
The book value of long-term equity investment in a single
Significant joint ventures or associates investee is more than RMB 15 million, or the profit and loss on
the long-term equity investment under the equity method
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accounts for over 3% of the Company's consolidated net profit.
The Company recognizes the profit distribution after the
Significant events after the balance sheet date
balance sheet date as a significant event
6. Accounting treatment method for business mergers under common control and not under common
control
(1) Business mergers under common control
For a business merger under common control, the merging party shall measure the assets and liabilities acquired
from the merged party at their book value on the merger date in the consolidated financial statements of the
ultimate controlling party. The difference between the book value of the net assets obtained in the business
merger and the book value of the merger is used to adjust the capital reserve. Where the capital reserve is
insufficient for offset, retained earnings shall be adjusted.
Business mergers under common control realized step-by-step through multiple transactions
The assets and liabilities acquired by the merging party from the merged party shall be measured based on their
book value on the merger date in the consolidated financial statements of the ultimate controlling party.
According to the difference between the sum of the book value of holding investment before merger and the
book value of newly paid consideration on the merger date and the book value of net assets obtained by
merging, the capital reserve shall be adjusted; if the capital reserve is insufficient for offset, retained earnings
may be adjusted. The long-term equity investment held before the acquisition of the merged party's control by
the merging party and the profit or loss, other comprehensive income, and changes in other owners' equities that
have been recognized during the period from the date of acquisition of the original equity, or the date of
common control of the merging party and the merged entity (which is later) to the merging date shall offset
against the retained beginning earnings or current profits and losses respectively during the period of the
comparative statement.
(2) Business mergers not under common control
For a business merger not under common control, the merger costs are the fair value of assets paid, liabilities
incurred or assumed, and equity securities issued by the Company on the acquisition date to obtain control over
the acquiree. The assets, liabilities, and contingent liabilities of the acquiree obtained are recognized as per the
fair value on the acquisition date.
The difference between the merging cost and the fair value of identifiable net assets obtained from the acquiree
shall be recognized as goodwill, and successively measured by deducting the accumulative depreciation
provision by cost; the difference between the merging cost and the fair value of identifiable net assets obtained
from the acquiree shall be included in the current profits and losses after review.
Business mergers not under common control realized step-by-step through multiple transactions
The merging cost shall be equal to the sum of the consideration paid on the acquisition date and the fair value of
the acquiree's equity, which has been held before the acquisition date, on the acquisition date. The acquiree's
equity held before the acquisition date shall be re-measured at its fair value on the acquisition date, and the
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difference between the fair value and its book value shall be included in the current investment income; if the
acquiree's equity held before the date of acquisition involves other comprehensive income, changes in other
owners' equity shall be transformed into the current profit on the acquisition date, except comprehensive income
generated due to remeasuring the change in net liabilities or new assets of defined benefit plan by the investee
and other comprehensive income related to non-trading equity instrument investment originally measured at fair
value through other comprehensive income.
(3) Disposal of related handling charges for business mergers
Intermediation costs for audit, legal service, assessment and consultation, and other administrative expenses
incurred shall be included in the current profit and loss when incurred during the business mergers. The
transaction expenses of equity securities or debt securities issued as merger consideration shall be included in
the initially recognized amount of equity securities or debt securities.
7. Judgment standard for control and preparation of consolidated financial statements
(1) Judgment standard for control
The consolidation scope of consolidated financial statements is determined based on control. Control means the
power of the Company over the investee, with which the Company enjoys variable returns through participating
in related activities of the investee and can influence its amount of return by using its power over the investees.
Once changes in relevant facts and circumstances lead to changes in relevant elements involved in the above
definition of control, the Company will conduct a reassessment.
When judging whether to include a structured entity in the scope of consolidation, the Company evaluates
whether to control the structured entity based on all facts and circumstances, including evaluating the purpose
and design of the establishment of the structured entity, identifying the types of variable returns, and bearing
part or all of the return variability by participating in its related activities.
(2) Preparation of consolidated financial statements
Consolidated financial statements are prepared by the Company based on the financial statements of the
Company and its subsidiaries as well as other related data. In the preparation of consolidated financial
statements, the accounting policies and accounting periods of the Company and its subsidiaries are required to
be consistent, and significant transactions and current balances between companies are offset.
Where a subsidiary or business has been acquired through a business combination involving enterprises under
common control in the reporting period, the subsidiary or business is deemed to be included in the consolidated
financial statements from the date they are controlled by the ultimate controlling party. Their operating results
and cash flows are respectively included in the consolidated income statement and consolidated cash flow
statement from the date they are controlled by the ultimate controlling party.
For subsidiaries and businesses increased due to business combination under different control during the
reporting period, the revenues, expenses, and profits of such subsidiaries and businesses from the purchase date
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to the end of the reporting period shall be included in the consolidated income statement, and their cash flows
shall be included in the consolidated cash flow statement.
The portion of shareholders' equity of subsidiaries not belonging to the Company shall be listed separately
under the item "Shareholders’ Equity" in the consolidated balance sheet as minority shareholders’ equity. The
portion of net profit or loss of subsidiaries in the current period belonging to minority shareholders’ equity shall
be listed separately under the item "Minority Shareholders' Profit or Loss" in the consolidated income statement.
If the loss of a subsidiary borne by minority shareholders exceeds its share in the owner's equity of the
subsidiary at the beginning of the period, the balance shall still offset the minority equity.
(3) Acquisition of equity from minority shareholders of subsidiaries
The capital reserve in the consolidated balance sheet shall be adjusted due to the balance between the long-term
equity investment cost newly obtained from minority equity and the net asset share of subsidiaries calculated
continuously starting from the purchase date or consolidation as per the new shareholding ratio and the balance
between disposing money obtained from partial disposal of subsidiaries' equity investment without loss of
control and the net asset share of subsidiaries calculated continuously starting from the purchase date or
consolidation corresponding to the disposal of long-term equity investment. If the capital reserve is insufficient
for offset, retained earnings may be adjusted.
(4) Disposal of the loss of control over subsidiaries
If the Company's control over the original subsidiaries is lost due to the disposal of part of an equity investment
or other reasons, the remaining equity shall be recalculated at fair value on the day when the control is lost. The
difference between the sum of consideration acquired from the disposal of equity and the fair value of the
remaining equity minus the sum of the share of net assets and the goodwill of the original subsidiaries
calculated constantly based on the original shareholding proportion from the acquisition date shall be included
in current investment income at the time of loss of control.
When the Company loses control over the original subsidiaries, other comprehensive income in connection with
equity investment of the original subsidiaries shall be subject to accounting treatment using the same basis on
which the original subsidiaries directly dispose of relevant assets or liabilities, and other changes in owners'
equity related to the original subsidiaries under the equity method shall be transferred into current profit or loss
at the time of loss of control.
8. Classification of joint arrangements and accounting treatment methods for joint operations
A joint arrangement refers to an arrangement jointly controlled by two or more participants. The joint
arrangement of the Company can be classified into joint operation and joint venture.
(1) Joint operations
Joint operations refer to joint arrangements in which the Company enjoys assets related to the arrangements and
bears liabilities related to the arrangements.
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The Company recognizes the following items related to the quantum of interest in joint operations and carries
out accounting treatment per relevant provisions of ASBE:
A. Recognize the assets held solely and the assets held jointly identified as per its shares;
B. Recognize the liabilities borne solely and the liabilities borne jointly identified as per its shares;
C. Recognize the revenue generated from the sale of shares enjoyed in the joint operation;
D. Recognize the revenue generated from the sale of shares enjoyed in the joint operation as per its shares;
E. Recognize the expenses incurred separately and the expenses incurred from the joint operation as per their
shares.
(2) Joint ventures
Joint ventures refer to joint arrangements in which the Company only has rights over the net assets of the
arrangements.
The Company carries out accounting treatment for investment in joint ventures according to the provisions on
equity method accounting of long-term equity investments.
9. Standards for defining cash and cash equivalents
Cash refers to cash on hand and deposits that are readily available for payment. Cash equivalents refer to short-
term highly liquid investments held by the Company that are readily convertible into known amounts of cash
and have an insignificant risk of change in value.
10. Foreign currency transaction and foreign currency statement translation
Foreign currency transactions of the Company are translated into bookkeeping base currency according to the
spot exchange rate on the transaction date.
On the balance sheet date, monetary items denominated in foreign currencies are translated at the spot exchange
rate on that date. Exchange differences arising from the difference between the spot exchange rate on the
balance sheet date and that at initial recognition or on the previous balance sheet date shall be included in
current profit and loss; foreign currency non-monetary items measured at historical cost are still translated at the
spot exchange rate on the transaction date; foreign currency non-monetary items measured at fair value shall be
translated at the spot exchange rate on the date when the fair value is determined. The difference between the
translated amount in recording currency and the original amount in recording currency shall be included in
current profit and loss or other comprehensive incomes according to the nature of the non-monetary items.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party and form financial liabilities or
equity instruments of other parties.
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(1) Recognition and derecognition of the financial instruments
The Company will recognize an item of financial asset or financial liability at the time when it becomes a party
to the contract of the financial instruments.
The financial assets shall be derecognized if one of the following conditions is met:
① The contractual right for collecting cash flow of the financial assets is terminated;
② This financial asset has been transferred and meets the following derecognition conditions for the transfer of
financial assets.
If the current obligation of a financial liability has been discharged in whole or in part, such financial liability or
part thereof shall be derecognized. The Company (the debtor) and the creditor sign an agreement to replace the
existing financial liabilities by assuming new financial liabilities, and if the contractual terms of the new
financial liabilities are substantially different from those of the existing financial liabilities, the existing
financial liabilities shall be derecognized and the new financial liabilities shall be recognized at the same time.
Financial assets transacted conventionally are subject to accounting recognition and derecognition on the
transaction day.
(2) Classification and measurement of financial assets
According to the business mode of financial assets management and the contractual cash flow characteristics of
financial assets, upon initial recognition, the Company classifies financial assets into financial assets measured
at amortized cost, financial assets at fair value with changes into other comprehensive income, and financial
assets at fair value through profit or loss.
Financial assets are measured at fair value at initial recognition. For financial assets at fair value through profit
or loss, the related transaction fees are directly included in the current profit or loss; for other financial assets,
the related transaction fees are included in the initially recognized amount. For accounts receivable arising from
the sale of products or the provision of labor services, which do not include or do not consider significant
financing components, the amount of consideration the Company is expected to be entitled to receive is taken as
the initial recognition amount.
Financial assets measured at amortized cost
The Company classifies the financial assets that meet all of the following conditions and are not designated to
be measured at fair value through profit or loss as those measured at amortized cost:
The business model of the Company to manage such financial assets is aimed at collecting contractual cash
flows;
The contract terms of the financial assets stipulate that cash flows generated on a specific date are only
payments of principal and interest based on the outstanding principal amount.
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After initial recognition, such financial assets are measured at amortized cost using the effective interest method.
Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged
to the current profit or loss at derecognition, amortization using the effective interest method, or recognition of
impairment.
Financial assets at fair value with changes into other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
financial assets at fair value through profit or loss as financial assets at fair value through other comprehensive
income:
The Company manages the financial asset in a business mode that aims at both collecting contractual
cash flows and selling the financial asset;
The contract terms of the financial assets stipulate that cash flows generated on a specific date are only
payments of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interest, impairment
losses or gains, and exchange gains and losses calculated by the effective interest method are included in current
profits and losses, and other gains or losses are included in other comprehensive income. At the time of
derecognition, the accumulated gains or losses previously included in other comprehensive income shall be
transferred out from other comprehensive income and included in current profits and losses.
Financial assets at fair value through profit or loss
Except for the above-mentioned financial assets measured at amortized cost and fair value through other
comprehensive income, the Company classifies all remaining financial assets as financial assets at fair value
through profit or loss. At the initial recognition, to eliminate or significantly reduce accounting mismatches, the
Company irrevocably designates some financial assets that should have been measured at amortized costs or
fair value with changes into other comprehensive income as the financial assets at fair value through profit or
loss.
Such financial assets are subsequently measured at fair value after initial recognition, and the resulting gains or
losses (including interest and dividend revenue) are included in current profit and loss unless the financial assets
are part of the hedging relationship.
However, for non-trading equity instrument investments, the Company irrevocably designates them as financial
assets at fair value with changes into other comprehensive income upon initial recognition. The designation is
made on a single investment basis and the related investments meet the definition of equity instruments from
the perspective of the issuer.
After initial recognition, such financial assets are subsequently measured at fair value. Dividend income that
meets the conditions is included in profit or loss, and other gains or losses and changes in fair value are included
in other comprehensive income. Upon derecognition, the accumulated gains or losses previously included in
other comprehensive income are transferred out of other comprehensive income and included in retained
earnings.
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The business model of managing financial assets refers to how the Company manages financial assets to
generate cash flows. The business model determines the cash flow source of the financial assets managed by the
Company, which may be the collection of contract cash flow, the sale of financial assets, or both. The Company
determines the business model for managing financial assets based on objective facts and specific business
objectives for managing financial assets decided by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flow generated by the relevant financial assets on the specific date is only the payment of
principal and interest based on the principal amount outstanding. In this context, principal refers to the fair
value of financial assets at initial recognition; interest includes consideration for the time value of money, credit
risk associated with the amount of principal outstanding over a specific period, and other fundamental
borrowing risks, costs, and profits. In addition, the Company evaluates the contract terms that may cause
changes in the time distribution or amount of contractual cash flows of financial assets to determine whether
they meet the requirements for the above-mentioned contractual cash flow characteristics.
Only when the Company changes the business mode of managing financial assets will all affected related
financial assets be reclassified on the first day of the first reporting period after the business mode changes,
otherwise, financial assets cannot be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities measured at fair value through profit
or loss and financial liabilities measured at amortized cost upon initial recognition. For financial liabilities not
classified as financial liabilities at fair value through profit or loss, the transaction costs are recognized in the
initially recognized amount.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and those
designated to be measured at fair value through profit or loss upon initial recognition. Such financial liabilities
shall be subsequently measured at fair value, and the profits or losses arising from changes in fair value as well
as dividends and interest expenditures related to such financial liabilities shall be included in current profits and
losses.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, and
gains or losses arising from derecognition or amortization are included in current profits and losses.
Difference between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
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② A contractual obligation to exchange financial assets or financial liabilities with another entity under
potentially unfavorable conditions.
③ Non-derivative contracts that must or can be settled with the enterprise's equity instruments in the future, and
according to which the enterprise will deliver a variable number of its equity instruments.
④ Derivative contracts that must or can be settled with the enterprise's equity instruments in the future, except
for derivative contracts where a fixed amount of its equity instruments is exchanged for a fixed amount of cash
or other financial assets.
Equity instruments refer to contracts that can prove the ownership of residual equity in an enterprise's assets
after all liabilities are deducted.
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets, the contractual obligation meets the definition of financial liabilities.
If a financial instrument must or can be settled with the Company's equity instrument, it is necessary to consider
whether the Company's equity instruments used for the settlement of such instruments are used as substitutes
for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the assets of the
issuer after all liabilities are deducted. If the situation is the former, the instrument is a financial liability of the
Company; if it is the latter, the instrument is an equity instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
The derivative financial instruments of the Company are initially measured at the fair value on the date of
signing the derivative deal contract, and subsequently measured at fair value. Derivative financial instruments
with positive fair values are recognized as an asset and those with negative fair values as a liability. Any gain or
loss arising from changes in fair value that does not comply with the provisions of hedge accounting is directly
included in current profits and losses.
For hybrid instruments containing embedded derivative instruments, if the main contract is a financial asset, the
relevant provisions of financial asset classification shall apply to the hybrid instruments as a whole. If the main
contract is not a financial asset and the hybrid instrument is not measured at fair value through profit or loss for
accounting treatment, the embedded derivative instruments are not closely related to the main contract in terms
of economic characteristics and risks and have the same conditions as the embedded derivative instruments. If
the separately existing instruments meet the definition of derivative instruments, the embedded derivative
instruments shall be separated from the hybrid instruments and treated as separate derivative financial
instruments. If the embedded derivative instruments cannot be measured separately at the time of acquisition or
on the subsequent balance sheet date, the hybrid instruments are designated as financial assets or financial
liabilities at fair value through profit or loss as a whole.
(5) Fair value of financial instruments
See "Disclosure of Fair Value" for methods for determining the fair value of financial assets and financial
liabilities.
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(6) Impairment of financial assets
The Company carries out impairment accounting treatment and recognizes the loss provision for the following
items based on expected credit losses:
Financial assets measured at amortized cost;
Receivables and debt instrument investments at fair value with changes into other comprehensive
income;
Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 — Revenue;
Lease receivables;
Financial guarantee contracts (except for those measured at fair value through profit or loss, where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in the
transferred financial assets).
Measurement of expected credit loss
The expected credit loss refers to the weighted average of the credit losses of financial instruments, with the risk
of default as weight. Credit loss refers to the difference between all contract cash flow that the Company
discounts at the original effective interest rate and is receivable per the contract and all cash flow expected to be
received, that is, the present value of all cash shortages.
The Company considers reasonable and reliable information about past events, current situation, and forecast of
the future economic situation and takes the risk of default as the weight to calculate the probability-weighted
amount of the present value of the difference between the cash flow receivable from the contract and the cash
flow expected to be received and recognize the expected credit loss.
The Company separately measures the expected credit losses of financial instruments at different stages. If the
credit risk of financial instruments has not increased significantly since initial recognition, it is in the first stage.
The Company measures the loss provision according to the expected credit losses in the next 12 months; if the
credit risk of a financial instrument has increased significantly since initial recognition but no credit impairment
has occurred, it is in the second stage. The Company measures the loss provision according to the expected
credit loss of the instrument throughout its duration; if a financial instrument has been credit-impaired since
initial recognition, it is in the third stage. The Company measures the loss provision according to the expected
credit loss of the instrument throughout its duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that their credit
risks have not increased significantly since initial recognition and measures the loss provision according to the
expected credit losses in the next 12 months.
The expected credit loss of the whole duration refers to the expected credit loss caused by all possible default
events of financial instruments throughout the estimated duration. The expected credit loss in the next 12
months refers to the expected credit loss caused by the possible default events of financial instruments within 12
months (or, the expected duration, if the expected duration of financial instruments is less than 12 months) after
the balance sheet date, which is part of the expected credit loss in the whole duration.
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When the expected credit loss is measured, the longest term that the Company needs to consider is the longest
contract term that the enterprise faces credit risk (including the option to renew the contract).
For financial instruments in the first and second stages and with low credit risk, the Company calculates interest
income according to the book balance before deducting provision for impairment and the actual interest rate.
For financial instruments in the third stage, the Company calculates interest income according to the amortized
cost (that is, the book balance less the accrual reduced-value allowance) and the effective interest rate.
For notes receivable, accounts receivable, and other receivables, if the credit risk characteristics of a customer
are significantly different from those of other customers in the portfolio, or the credit risk characteristics of the
customer have changed significantly, the Company shall make provision for bad debts on the receivable item.
Except for receivables with provision for bad debts drawn on a single basis, the Company divides receivables
into portfolios according to credit risk characteristics and calculates provision for bad debts based on portfolios.
Notes receivable, accounts receivable
For notes receivable and accounts receivable, regardless of whether there is a significant financing component,
the Company always measures their loss provision according to the amount equivalent to the expected credit
loss in the whole duration.
When the information of expected credit loss cannot be evaluated at a reasonable cost for a single financial asset,
the Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss based on the portfolio, and determines the portfolio based on
the following:
A. Notes receivable
Notes receivable portfolio 1: Bank acceptance bills
Notes receivable portfolio 2: Commercial acceptance bills
B. Accounts receivable
Accounts receivable portfolio 1: Leasing and other portfolio
Accounts receivable portfolio 2: Jewelry sales business portfolio
For notes receivable divided into portfolios, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of the future economic situation, and calculates the expected
credit loss through default risk exposure and the expected credit loss rate for the whole duration.
For the accounts receivable divided into portfolios, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of the future economic situation, formulates the comparison
table of aging of accounts receivable and the expected credit loss rate in the entire duration, and calculates the
expected credit loss. The age of accounts receivable shall be calculated from the date of recognition.
Other receivables
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The Company divides other receivables into several portfolios based on credit risk characteristics, calculates the
expected credit loss based on the portfolio, and determines the portfolio based on the following:
Other receivables portfolio 1: Aging portfolio
Other receivables portfolio 2: Portfolio of deposits and security deposits receivable
Other receivables portfolio 3: Portfolio of concerned intercourse funds within the consolidation scope
of receivables
For other receivables that are divided into portfolios, the Company calculates the expected credit loss based on
the default risk exposure and the expected credit loss rate within the next 12 months or the whole duration. The
age of other receivables divided into portfolios by aging shall be calculated from the date of recognition.
Long-term receivables
The long-term receivables of the Company include concerned intercourse funds receivable, etc.
The Company divides concerned intercourse funds receivable into several portfolios based on credit risk
characteristics, calculates the expected credit loss based on the portfolio, and determines the portfolio based on
the following:
Long-term receivables portfolio 1: Other receivables
For concerned intercourse funds receivable divided into portfolios, the Company refers to the historical credit
loss experience, combines the current situation with the forecast of the future economic situation, and calculates
the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration.
For other receivables and long-term receivables divided into portfolios except for concerned intercourse funds
receivable and labor payments receivable, the expected credit loss is calculated based on the default risk
exposure and the expected credit loss rate within the next 12 months or the whole duration.
Creditor's rights investments, other creditor's rights investments
For creditor's rights investments and other creditor's rights investments, the Company calculates the expected
credit loss according to the nature of the investment as well as various types of counterparty and risk exposure
through default risk exposure and the expected credit loss rate in the next 12 months or the entire duration.
Assessment of significant increase in credit risk
To determine the relative changes in the default risks of financial instruments in the duration and assess whether
the credit risk of financial instruments has increased significantly since initial recognition, the Company
compares the default risk of financial instruments on the balance sheet date with the default risk on the initial
recognition date.
When determining whether the credit risk has significantly increased since the initial recognition, the Company
considers reasonable and well-founded information obtained without unnecessary additional cost or effort,
including forward-looking information. The information considered by the Company includes:
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The debtor fails to pay the principal and interest by the contract expiration date;
A significant deterioration (if any) in the external or internal credit ratings of a financial instrument,
whether it has occurred or is anticipated;
A significant deterioration in the operating performance of the debtor, whether it has occurred or is
anticipated;
Changes in the existing or expected technical, market, economic, or legal environment, which will have
a significant adverse impact on the debtor's ability to repay the Company.
According to the nature of financial instruments, the Company evaluates whether the credit risk has increased
significantly based on individual financial instruments or portfolios of financial instruments. When evaluating
based on portfolios of financial instruments, the Company may classify the financial instruments based on
common credit risk characteristics, such as overdue information and credit risk rating.
If the financial instrument is overdue for more than 30 days, the Company determines that its credit risk has
significantly increased.
The Company considers that a default of a financial asset occurs when:
The borrower is unlikely to pay in full what is owed to the Company and the assessment does not cover
the realization of the collateral (if held) or other recourse actions by the Company;
Financial assets are overdue for more than 90 days.
Credit-impaired financial assets
On the balance sheet date, the Company evaluates whether the credit impairment has occurred to financial
assets measured by amortized cost and at fair value with changes into other comprehensive income; When one
or more events that have an adverse effect on the expected future cash flow of a financial asset occur, the
financial asset becomes a credit-impaired financial asset. Evidence for credit-impaired financial assets includes
the following observable information:
The issuer or debtor is caught in a serious financial difficulty;
The debtor breaches the agreement of contract, such as default or overdue payment of interest or
principal;
The Company grants concessions to the debtor due to economic or contractual considerations related to
the debtor's financial difficulties, which would not be made under any other circumstances;
There lies a great probability of bankruptcy or other financial restructuring for the debtor;
The issuer or debtor is caught in financial difficulties, which leads to the disappearance of the active
market of the financial asset;
Presentation of provision for expected credit loss
To reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re-
measures the expected credit loss on each balance sheet date. The increase or reversal amount of provision for
loss therefrom shall be regarded as impairment loss or gain and included in current profits and losses. For the
financial assets measured at amortized cost, the provision for loss shall be used to offset against the book value
of financial assets presented in the balance sheet; for the debt investments measured at fair value with changes
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into other comprehensive income, the Company recognizes the provision for loss in other comprehensive
income, and the book value of financial assets will not be deducted.
Write-off
When the Company no longer reasonably expects that the contractual cash flow of the financial asset can be
recovered in whole or in part, the book balance of the financial asset is directly written down. Such write-downs
may constitute the derecognition of related financial assets. This usually happens when the Company
determines that the debtor has no assets or sources of revenue to generate sufficient cash flow to repay the
amount to be written down. However, according to the Company's procedures for recovering due amounts,
written-down financial assets may still be affected by implementation activities.
If the write-down financial assets are recovered later, they shall be regarded as the reversal of impairment loss
and included in the current profits and losses.
(7) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the other party other than
the issuer of such financial assets (transferee).
If the Company has transferred substantially all risks and rewards of ownership of a financial asset to the
transferee, the financial asset shall be derecognized; if it retains substantially all risks and rewards of ownership
of the financial asset, the financial asset shall not be derecognized.
If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset, it
shall deal with them as follows: If the control over the financial asset is waived, the financial asset shall be
derecognized and the assets and liabilities incurred shall be recognized; if the control over the financial asset is
not waived, the relevant financial asset shall be recognized to the extent that it continues to be involved in the
transferred financial asset, and the relevant liabilities shall be recognized accordingly.
(8) Offset of financial assets and liabilities
When the Company has a legal right to offset the recognized financial assets and financial liabilities, and such
legal right is currently enforceable, and the Company plans to settle on a net basis or realize the financial assets
and pay off the financial liabilities simultaneously, the financial assets and financial liabilities are presented in
the balance sheet at the amount after offsetting each other. Besides, financial assets and financial liabilities are
presented separately in the balance sheet and are not mutually offset.
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock
Exchange for Self-discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for
jewelry-related business.
12. Inventories
The Company shall abide by the disclosure requirements for "jewelry-related business" in the Guidelines of Shenzhen Stock
Exchange for Self-Regulatory Supervision of Listed Companies No. 3 —Industry Information Disclosure.
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(1) Classification of inventories
The Company's inventories include raw materials, finished goods, hedged items, materials processed on a
commission basis, and goods sold on a commission basis.
(2) Valuation method for dispatched inventories
The Company's inventories are measured at the actual cost when acquired. Raw materials and inventory items
are valued using the first-in, first-out method, and the specific valuation method when issued.
(3) Recognition and withdrawal of provision for decline in the value of inventories
On the balance sheet date, inventories are valued by cost or net realizable value, whichever is lower. If the net
realizable value is lower than the cost, the provision for decline in the value of inventories is accrued.
Net realizable value is the estimated selling price less estimated costs to be incurred upon completion, estimated
selling expenses, and related taxes. When the net realizable value of inventories is determined, the obtained
concrete evidence is taken as a basis, and the purpose of holding inventories and the impact of matters after the
balance sheet date are taken into consideration.
The Company usually conducts the provision for decline in the value of inventories on an individual inventory
item basis. For the inventories with high quantity and low unit price, the provision for decline in the value of
inventories will be done by inventory class.
On the balance sheet date, if the factors affecting the previous write-down of inventory value have disappeared,
the provision for decline in the value of inventories shall be reversed within the amount original provision.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) Amortization method for low-value consumables
The Company adopts the one-off amortization method for low-value consumables collected.
13. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures, and associates. When
the Company can exercise significant influence over the investee, the investee is an associate.
(1) Recognition of initial investment cost
Long-term equity investment formed by business combination: For long-term equity investment acquired
through business combination under common control, the book value share of the owner's equity of the
combined party in the consolidated financial statements of the ultimate controlling party shall be recognized as
the investment cost on the combination date; for long-term equity investment acquired through business
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combination under different control, the combination cost shall be recognized as the investment cost of long-
term equity investment.
For long-term equity investments acquired by other methods: For those acquired by cash payment, the actual
purchase price shall be taken as the initial investment cost; for those acquired by issuing equity securities, the
fair value of issued equity securities shall be taken as the initial investment cost.
(2) Subsequent measurement and recognition of related profit or loss
Investments in subsidiaries are accounted for using the cost method unless they meet the conditions of being
held for sale; investments in associates and joint ventures are calculated through the equity method.
For long-term equity investments calculated by cost method, except for the declared but not yet released cash
dividends or profits included in the actual price or consideration paid when acquiring the investment, the
distributed cash dividends or profits declared by the investee shall be recognized as investment income and
included in current profits and losses.
For long-term equity investments calculated through the equity method, if the initial investment cost is greater
than the share of fair value of net identifiable assets of the investee at the time of investment, the investment
cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than the share
of fair value of net identifiable assets of the investee at the time of investment, the book value of the long-term
equity investment shall be adjusted and the difference shall be included in current profits and losses.
For equity method-based calculation, the investment income and other comprehensive income shall be
recognized respectively according to the share of the net profits and losses and other comprehensive income
realized by the investee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equity
investment shall be adjusted. The part of the due share shall be calculated according to the distributed profit or
cash dividend declared by the investee, and the book value of the long-term equity investment shall be reduced
accordingly. For other changes of owners' equity of the investee apart from net profit and loss, other
comprehensive income, and profit distribution, the book value of long-term equity investment shall be adjusted
and included in capital reserve (other capital reserves). The recognition of the share of the investee's net profits
and losses that should be enjoyed is based on the fair value of the identifiable assets of the investee at the time
of investment acquisition. The investee's net profit is then adjusted per the Company's accounting policies
before recognition during the accounting period.
If it can exert a significant influence or implement joint control to the investee but not constitute the control due
to the additional investment and other causes, on the date of transition, the sum of the fair value of equity
originally held and the new investment cost shall be regarded as the initial investment cost accounted through
the equity method. If the original equity is classified as a non-trading equity instrument investment measured at
fair value with changes into other comprehensive income, the related accumulated changes in fair value
originally included in other comprehensive income shall be transferred to retained earnings in accounting using
the equity method.
Suppose the Company loses joint control over or significant influence on the investee due to the disposal of
partial equity investment and other reasons. In that case, the remaining equity after disposal shall be subject to
accounting treatment according to the Accounting Standards for Business Enterprises No. 22 — Recognition
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and Measurement of Financial Instruments on the date of losing joint control or significant influence, and the
difference between fair value and book value shall be included in current profits and losses. Other
comprehensive income recognized from the original equity investment due to accounting through the equity
method shall be subject to accounting treatment using the same basis on which the investee directly disposes of
relevant assets or liabilities when the accounting with the equity method is terminated; other changes in owner's
equity related to the original equity investment shall be transferred into current profits and losses.
If the Company loses control over the investee due to the disposal of partial equity investment or other reasons,
and the residual equity after disposal can exercise joint control over or significant influence on the investee, it
shall be accounted for through the equity method instead, and adjusted as if it had been calculated through the
equity method since it was acquired; if the residual equity after disposal cannot exercise joint control over or
significant influence on the investee, it shall be subject to accounting treatment according to relevant provisions
of Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial
Instruments, and the difference between its fair value and book value since the date of losing control shall be
included in current profits or losses.
If the shareholding proportion of the Company decreases due to capital increase by other investors, resulting in
loss of control but common control over or significant influence on the investee, the Company's share of net
assets increased due to capital increase and share expansion of the investee shall be recognized according to the
new shareholding proportion. The difference between the original book value of long-term equity investment
corresponding to the decrease in the shareholding proportion that shall be carried forward shall be included in
current profits and losses; the new shareholding proportion is then adjusted as if it had been accounted for using
the equity method since the acquisition of the investment.
Unrealized internal transaction gains and losses between the Company and associates and joint ventures shall be
calculated according to the shareholding proportion, and the investment gains and losses shall be recognized
based on the offset. However, the unrealized internal transaction losses incurred between the Company and the
investee that belong to impairment loss of transferred assets shall not be offset.
(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the sharing of control over certain arrangements under related agreements, and associated
activities of the arrangement can be determined only when the unanimous consent of the parties sharing the
control right is obtained. When determining the existence of joint control, the first step is to assess whether the
arrangement is collectively controlled by all parties involved or a combination of the parties. The next step is to
evaluate whether decisions about the relevant activities of the arrangement require the unanimous consent of
those parties who collectively control the arrangement. If all participants or a group of participants must act in
concert to decide the relevant activities of an arrangement, it is considered that all participants or a group of
participants collectively control the arrangement; if two or more participants can collectively control an
arrangement, it does not constitute joint control. Protective rights are not considered in determining whether or
not there is joint control.
Significant influence means the power of the investor to participate in making decisions on the financial and
operating policies of an investee, but the investor cannot control or jointly control with other parties over the
formulation of these policies. When determining whether significant influence can be exerted on the investee,
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we shall consider the impact of voting shares directly or indirectly held by the investor and current executable
potential voting rights held by the investor and other parties after they are assumed to be converted into equity
in the investee, including the impact of current convertible warrants and share options and convertible corporate
bonds issued by the investee.
If the Company directly owns or indirectly owns, via its subsidiaries, more than 20% (including) but less than
50% of voting shares of the investee, the condition shall be recognized as exerting significant influence on the
investee unless concrete evidence shows that participation in the production and business decisions of the
investee is not allowed without constituting significant influence. If the voting shares of the investee owned by
the Company are less than 20% (not including), the condition shall not be considered as being of significant
influence on the investee in general unless concrete evidence shows that the Company can participate in the
production and business decisions of the investee under this condition, constituting significant influence.
(4) Impairment test method and accrual method for impairment provision
For investments in subsidiaries, associates, and joint ventures, please see Note V. 19 for the accrual method for
impairment provision.
14. Investment properties
Measurement model of investment properties
Cost method
Depreciation or amortization method
Investment properties are properties held for rent earnings, capital appreciation, or both. Investment properties
of the Company include the land right of use that has already been rented, the land right of use held for transfer
after appreciation, and buildings that have been rented.
Investment properties of the Company shall be initially measured as per the price upon acquisition and
depreciated or amortized on schedule as per relevant provisions on fixed assets or intangible assets.
Investment properties are measured subsequently as per the cost model. See Note V. 19 for the provision
method of assets impairment.
The disposal income from the sale, transfer, discard, or destruction of the investment properties shall be
included in current profits and losses after their book value and relevant taxes are deducted.
15. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for producing goods, rendering labor services, renting, or business
management with a useful life of over one fiscal year.
The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to flow into an
enterprise and the cost of such fixed assets can be measured reliably.
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Fixed assets of the Company shall be initially measured at the actual cost when acquired.
For the subsequent expenses related to fixed assets, if the economic benefits of the assets are likely to flow into the Company and
the cost can be reliably measured, they are included in the cost of fixed assets; daily repair costs of fixed assets that do not meet
the conditions for subsequent expenses for capitalization of fixed assets are included in current profits and losses or the cost of
relevant assets according to the beneficiaries upon occurrence. The book value of the part being replaced will be derecognized.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation period Residual ratio
rate
Premises and buildings Straight-line method 10, 35-40 0, 3 10, 2.43-2.77
Including: Decoration
Straight-line method 10 0 10
of self-owned houses
Machinery and
Straight-line method 12 3 8.08
equipment
Electronic equipment Straight-line method 5-7 3 13.86-19.4
Transportation
Straight-line method 7 3 13.86
equipment
Offices and other
Straight-line method 7 3 13.86
equipment
The depreciation rate of fixed assets with provision for impairment shall be calculated by deducting the
accumulated amount of provision for impairment of fixed assets.
16. Construction in progress
The Company's cost of construction in progress is determined according to the actual construction expenditures,
including various necessary construction expenditures incurred during the construction period, borrowing costs
that shall be capitalized before the project reaches the expected serviceable condition, and other relevant
expenses.
Construction in progress is transferred to fixed assets when it is ready for its intended use.
See Note V. 19 for the provision method of assets impairment of the construction in progress.
17. Borrowing costs
(1) Recognition principle for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition, construction, or
production of assets eligible for capitalization shall be capitalized and included in relevant asset costs; other
borrowing costs shall be recognized as expenses according to their amount when incurred and included in
current profits and losses. Borrowing costs shall be capitalized when all of the following conditions are satisfied:
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① Expenditures on an asset have been incurred, and expenditures on the asset comprise payments in cash,
transfer of non-cash assets, or assumption of debts with interests for acquisition and construction or production
of the asset qualifying for capitalization;
② Borrowing costs have been occurred;
③ The acquisition, construction, or production activities necessary to bring the assets to their intended use or
sale have started.
(2) Period of borrowing costs capitalization
The capitalization of borrowing costs shall cease when the assets eligible for capitalization acquired,
constructed, or produced by the Company are ready for their intended use or sale. Borrowing costs incurred
after the assets meeting capitalization conditions are ready for their intended use or sale shall be recognized as
expenses according to the amount incurred and included in the current profits or losses.
If the acquisition, construction, or production of assets eligible for capitalization is interrupted abnormally and
the interruption period exceeds three consecutive months, the capitalization of borrowing costs shall be
suspended; the borrowing costs during the normal interruption period shall continue to be capitalized.
(3) Capitalization rate and calculation method of capitalization amount of borrowing costs
The balance of the interest from special borrowings that occurred in the current period deducting the interest
income acquired from unused borrowings deposited in banks or deducting investment income from temporary
investment of the borrowings shall be capitalized. The capitalized amount of general borrowing shall be
determined by multiplying the weighted average of the asset expenditures from the accumulative asset
expenditures exceeding the special borrowing by the capitalization rate of general borrowing occupied. The
capitalization rate is determined based on the weighted average interest rate of general borrowing.
During the capitalization period, the balance of exchange for special foreign-currency borrowings shall be
capitalized in full amount, while that of general foreign-currency borrowings shall be included in current profits
and losses.
18. Intangible assets
(1) Service life and its determination basis, estimation, amortization method, or review procedure
The Company's intangible assets include land use rights, computer software, trademark, etc.
Intangible assets are initially measured at cost and their service life is determined upon acquisition. If the
service life of an intangible asset is limited, it shall be amortized within the estimated service life with an
amortization method that can reflect the expected realization mode of economic benefits related to the asset
since the asset is available for use; if the expected realization mode cannot be reliably determined, the asset
shall be amortized with the straight-line method; intangible assets with uncertain service life shall not be
amortized.
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The amortization method for intangible assets with limited service life is as follows:
Amortization
Category Service life Determination basis of service life Remarks
method
Land use Straight-line
50 years Legal right to use
right method
Computer Determine the service life with reference to the term Straight-line
5 years
software that can bring economic benefits to the Company method
Determine the service life with reference to the term Straight-line
Trademark 10 years
that can bring economic benefits to the Company method
At the end of each year, the Company shall recheck the service life and amortization method of intangible assets
with finite service life. If there are changes from previous estimates, the original estimates shall be adjusted, and
the changes shall be accounted for as changes in accounting estimates.
If an intangible asset is expected no longer to generate future economic benefits for the Company at the balance
sheet date, the book value of the asset is transferred to current profits and losses.
See Note V. 19 for the provision method of assets impairment of the intangible assets.
(2) Collection scope of R&D expenditures and relevant accounting treatment methods
The R&D expenditures of the Company refer to expenditures directly related to the R&D activities of the
Company, including salaries of R&D personnel, direct R&D investments, depreciation expenses and long-term
deferred expenses, design expenses, equipment commissioning expenses, amortization expenses of intangible
assets, expenses incurred from commissioned external R&D, and other expenses. The salaries of R&D
personnel are included in R&D expenditures according to the project working hours.
The Company divides the expenditure of internal R&D projects into research stage expenditure and
development stage expenditure.
Expenditures at the research stage shall be included in current profits or losses when incurred.
Expenditures at the development stage can be capitalized only when all of the following conditions are met,
namely: It is technically feasible to complete the intangible assets so that they can be used or sold; there is an
intention to complete the intangible asset and use or sell it; ways for intangible assets to generate economic
benefits include proving that there is a market for the products produced by using the intangible assets or the
intangible assets themselves, as well as proving their usefulness if intangible assets are to be used internally;
there are sufficient technical, financial, and other resources to complete the development of the intangible assets
and have the ability to use or sell them; the expenditures attributable to the development stage of intangible
assets can be measured reliably. Development expenditures that do not meet the above conditions are included
in current profits and losses.
The R&D projects of the Company will enter the development stage after meeting the above conditions and
passing the technical feasibility study and economic feasibility study to gain project approval.
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The capitalized expenditures in the development stage shall be presented as development costs on the balance
sheet and shall be transferred into intangible assets from the date when the project meets the expected usage.
19. Impairment of long-term assets
The impairment of the long-term equity investments in subsidiaries, associates, and joint ventures, as well as of
investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, and others,
subsequently measured by cost model (except for inventories, investment properties, deferred income tax assets,
and financial assets measured by fair value model) shall be determined by the Company according to the
following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign
exists, the Company estimates the recoverable amount and conducts the impairment test. The goodwill formed
due to business combination, intangible assets with uncertain useful life, and intangible assets that have not yet
reached the usable state shall be tested for impairment every year regardless of whether there is any sign of
impairment.
The recoverable amount is the net amount gained after the fair value of assets deducts the disposal fees, or the
present value of the estimated future cash flow of the assets, whichever is higher. The Company estimates the
recoverable amount on a single-asset basis. If it is difficult to estimate the recoverable amount of a single asset,
the recoverable amount of the asset group shall be determined based on the asset group to which the asset
belongs. The asset group is determined by whether the main cash flow generated by the asset group is
independent of those generated by other assets or asset groups.
When the asset or asset group's recoverable amount is lower than its book value, the Company reduces its book
value to its recoverable amount, the reduced amount is recorded in the current profit and loss, and the provision
for impairment of assets is recognized.
For the impairment test of goodwill, the book value of goodwill formed by the business combination shall be
amortized to relevant asset groups with a reasonable method since the acquisition date; if it is difficult to
amortize to relevant asset groups, it shall be amortized to relevant asset group portfolios. Asset group or
portfolio of asset group is an asset group or portfolio of asset group that can benefit from synergies of a business
combination and is not greater than the reportable segment of the Company.
During the impairment test, if there is any sign of impairment in the asset groups or portfolios of asset groups
related to goodwill, first conduct an impairment test for asset groups or portfolios of asset groups that do not
contain goodwill, calculate the recoverable amount, and recognize the corresponding impairment loss. Then, an
impairment test shall be conducted on the asset groups or portfolios of asset groups that include goodwill. The
book value should be compared with the recoverable amount; if the recoverable amount is found to be lower
than the book value, an impairment loss for goodwill shall be recognized.
Once recognized, the impairment loss of assets shall not be reversed in future accounting periods.
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20. Long-term deferred expenses
Long-term deferred expenses of the Company shall be valued as per actual cost and averagely amortized as per
the expected benefit period. If the long-term deferred expense project will not benefit the future accounting
period, the amortized value of the project shall be included in the current profit and loss in full amount.
21. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when employees provide services, the Company recognizes the actual salary and
bonus of employees, social insurance premiums such as medical insurance premiums, work-related injury
insurance premiums, and maternity insurance premiums paid for employees according to the specified
benchmark and proportion, and housing fund as liabilities, and includes them in current profits and losses or
relevant asset costs.
(2) Accounting treatment for post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them, the
defined contribution plan refers to a post-employment benefit plan in which the enterprise has no further
payment obligation after paying fixed expenses to an independent fund; the defined benefit plan refers to a post-
employment benefit plan other than a defined contribution plan.
Defined contribution plan
The defined contribution plan includes basic endowment insurance, unemployment insurance, etc.
During the accounting period when employees provide services, the amount payable calculated according to the
defined contribution plan is recognized as a liability and included in current profits and losses or related asset
costs.
Defined benefit plans
For defined benefit plans, an independent actuary shall carry out actuarial valuation on the annual balance sheet
date, and determine the cost of providing benefits with the expected cumulative welfare unit method. Employee
compensation costs arising from the defined benefit plan of the Company shall include the following
components:
① Service costs, including current service costs, past service costs, and settlement gains or losses. Current
service costs refer to the increased amount in the present value of defined benefit plan obligations caused when
employees provide services in the current period; past service costs refer to the increase or decrease in the
present value of defined benefit plan obligations related to employee services in previous periods caused by
modifications for defined benefit plans.
② Net interest on the defined benefit plan net liabilities or assets, including interest income on plan assets,
interest cost on the defined benefit plan obligation, and interest on the effect of the asset ceiling.
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③ Changes as a result of remeasurement of the defined benefit plan's net liabilities or assets.
Unless other accounting standards require or allow employee's benefit costs to be included in assets costs, the
above items ① and ② shall be included by the Company in current profits and losses; item ③ shall be included
in other comprehensive income and be not reversed to profit or loss; when the original defined benefit plan is
terminated, the amount included in other comprehensive income before shall be completely transferred to the
undistributed profit.
(3) Accounting treatment for termination benefits
If the Company provides termination benefits to employees, the employee compensation liabilities arising from
the termination benefits shall be recognized at the earliest of the following two dates and included in current
profits and losses: The Company cannot unilaterally withdraw the termination benefits provided due to the labor
relationship termination plan or layoff proposal; the Company recognizes the costs or expenses related to the
restructuring involving the payment of termination benefits.
If an employee's internal retirement plan is implemented, the economic compensation before the official
retirement date belongs to the termination benefits. During the period from the date when the employee stops
providing services to the normal retirement date, the wages to be paid to the early retired employees and the
social insurance premiums to be paid are included in current profits and losses in a lump sum. Economic
compensation after the official retirement date (such as the pension) is treated as post-employment benefits.
(4) Accounting treatment for other long-term employee benefits
The other long-term employee benefits provided by the Company to its employees, which meet the criteria for a
defined contribution plan, shall be handled per the regulations relevant to the defined contribution plan
mentioned above. If the benefits meet the defined benefit plan, they shall be handled per the relevant provisions
on the defined benefit plan above, but the part of "changes arising from re-measuring the net liabilities or net
assets of the defined benefit plan" in the relevant employee compensation costs shall be included in current
profits and losses or the relevant asset costs.
22. Estimated liabilities
An obligation related to contingencies, if satisfying the following conditions at the same time, will be
recognized as an estimated liability by the Company:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factors
pertinent to the contingencies. Where the time value of money is of significant influence, the optimal estimate is
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recognized through the discount of relevant future cash outflows. At the balance sheet date, the book value of
the estimated liabilities is reviewed and adjusted by the Company to reflect the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized estimated liabilities are expected to be
compensated by a third party or any other party, the amount of compensation shall be recognized as assets
separately only when it is basically sure that the amount can be obtained. The recognized amount of
compensation shall not exceed the book value of recognized liabilities.
23. Revenue
Accounting policies of revenue disclosure recognition and measurement by business types
(1) General principle
The Company has fulfilled its performance obligations of the contract, which means it recognizes the revenue
when the customer has acquired the control rights of relevant goods or services.
If the contract contains two or more performance obligations, the Company shall, at the beginning date of the
contract, apportion the transaction price to each performance obligation according to the relative proportion of
the individual selling price of the commodities or services promised by each performance obligation, and
measure the revenue according to the transaction price apportioned to each performance obligation.
When one of the following conditions is met, it is considered the fulfillment of performance obligations over a
period of time; otherwise, it is regarded as the fulfillment of performance obligations at a specific point in time:
① The customer simultaneously obtains and consumes the economic benefits arising from the contract
performance of the Company.
② The customer can control the goods under construction during the performance of the Company.
③ The goods produced during the performance of the Company have irreplaceable uses, and the Company has
the right to collect payments for the accumulated performance portion to date throughout the contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the
revenue within that period according to the performance progress. If the performance progress cannot be
reasonably confirmed and the costs incurred by the Company are expected to be compensated, the incomes shall
be recognized according to the amount of costs incurred until the performance progress is reasonably confirmed.
In the case of a performance obligation satisfied at a certain time point, the revenue shall be recognized by the
Company at a certain time point when a customer obtains control of relevant goods or services. In determining
whether a customer has obtained the control rights of the goods or services, the Company shall consider the
following signs:
① The Company enjoys the current collection right concerning such goods or services, i.e., customers have the
obligation to pay immediately concerning the goods.
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② The Company has transferred the legal ownership of the goods to customers, i.e., customers have owned the
legal ownership of the goods.
③ The Company has transferred the goods to customers in kind, i.e., customers have possessed the goods.
④ The Company has transferred the major risks and rewards from the ownership of the goods to customers, i.e.,
customers have obtained the major risks and remuneration on the ownership of the goods.
⑤ Customers have accepted such goods or services.
⑥ Other signs indicate that customers have obtained the right to control the goods.
(2) Specific method
The Company's revenue is mainly derived from the following businesses: Property leasing and services, jewelry
sales and services.
① Property leasing and services
The Company recognizes the lease receipts as rental income with the straight-line method during each period of
the lease term, capitalizes the incurred initial direct costs and amortizes them on the same basis for rental
income recognition, and includes them in current profits and losses by stages. The Company's variable lease
payment obtained that is related to operating leasing and not included in lease receipts is included in the current
profits and losses when it actually occurs.
The contract for the provision of services between the Company and customers includes the performance
obligation of services related to the lease of real estate. Since customers obtain and consume the economic
benefits brought by the Company's performance at the same time, the Company regards it as the performance
obligation to be performed within a certain period of time, and the revenue is equally apportioned and
recognized during the service provision period.
② Sales and services of gold and jewelry
The Company determines whether it is the main responsible person or the agent during transactions according
to its control over goods or services before transferring them to customers. If the Company has control over the
goods or services before transferring them to customers, the Company is the main responsible person and
recognizes the revenue according to the total consideration received or receivable; otherwise, the Company acts
as an agent, and recognizes the revenue according to the amount of commission or handling charge expected to
be entitled, which is determined according to the net amount of the total consideration received or receivable
after deducting the price payable to other related parties, or according to the established commission amount or
proportion.
The specific recognition method of revenues generated from gold and jewelry sales is as follows:
In gold and jewelry sales, the Company mainly takes a direct-sales model, with the sales agency model as a
supplement. For the direct-sales model, the sales channels include wholesalers, e-commerce, and retail in direct-
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sales stores. The time points for revenue recognition under the sales models with such channels as wholesalers,
e-commerce, and retail are as follows:
① In wholesaler sales, purchasers cooperate with the Company directly. The time point is when the goods-
related control rights have been transferred to the purchasers, which signifies that the performance obligation is
completed according to the sales contract. The revenue will then be recognized after customers accept the goods
and issue receipts. This is a performance obligation performed at a certain time point.
② In e-commerce sales, the Company sells goods on e-commerce platforms. The sales revenue will be
recognized when customers have signed for the goods and the Company has received payments or obtained the
right to claim payments. This is a performance obligation performed at a certain time point.
③ In retail through direct-sales stores, the Company sells its goods in its self-owned real estate. The sales
revenue will be recognized when the Company has sold goods to customers and received payments or obtained
the right to claim payments. This is a performance obligation performed at a certain time point.
④ In the sales agency model, the Company sends products to stores of entrusted sellers. The sales revenue will
be recognized when the sellers have sold goods to end consumers, end consumers have signed for goods, and
the control right has been transferred to end consumers. This is also the time point signifying that the obligation
performance for the contract is done. This is a performance obligation performed at a certain time point.
The specific methods for recognizing other revenues for the Company are as follows:
In the gold and jewelry sales agency business, the Company acts as an agent and provides agency services for
principals according to the agency purchase agreement to earn agency commission fees. The Company
recognizes the agency commission revenue when customers pay and sign for goods.
In the agency gold repurchase business, the Company acts as a supplier agent to repurchase gold and collect
service fees. Revenue is calculated and recognized based on the duration of the agency gold repurchase and
according to the contract.
Recognition methods and measurement methods for the same kind of business with different business models and different
revenues
The Company shall abide by the disclosure requirements for "jewelry-related business" in the Guidelines of Shenzhen Stock
Exchange for Self-Regulatory Supervision of Listed Companies No. 3 —Industry Information Disclosure.
24. Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied and the
government subsidies can be received.
The government subsidies of monetary assets shall be measured at the amount received or receivable. The
government subsidies considered non-monetary assets are measured based on the fair value, or the nominal
amount of RMB 1 if the fair value cannot be acquired reliably.
Asset-related government subsidies refer to the ones that are acquired by the Company and used for establishing
or forming long-term assets in other ways. Other government subsidies are considered revenue-related
government subsidies.
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For the government subsidies with the grant objects not expressly stipulated in the government documents, if
they can be used to form long-term assets, the government subsidies corresponding to the value of the assets are
deemed as asset-related government subsidies while the rest are deemed as revenue-related government
subsidies. For the government subsidies that are difficult to differentiate, the government subsidies as a whole
are deemed as revenue-related government subsidies.
The asset-related government subsidies shall be recognized as deferred income, which shall be included in
profits and losses in installments reasonably and systematically within the service life of the relevant assets. For
revenue-related government subsidies, they shall be included in the current profit and loss if used to compensate
for the incurred related costs or losses; if used to compensate for the related costs or losses during future periods,
they shall be included in the deferred income, and included in the current profit and loss during the period when
the related costs or losses are recognized. Government subsidies measured at the nominal amount shall be
directly included in current profits and losses. The Company adopts the same treatment for those transactions of
similar government subsidies.
The government subsidies related to daily activities shall be included in other incomes according to the essence
of economic business. Government subsidies irrelevant to daily activities are included in non-operating revenue.
For the government subsidies recognized to be refunded, if the government subsidies are used to offset the book
value of the related assets when they are initially recognized, the book value of assets shall be adjusted. If there
is deferred income concerned, the government subsidies shall be offset against the book balance of the deferred
income, and the excess shall be included in current profits and losses. In other cases, they shall be directly
included in current profits and losses.
25. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in current
profit or loss as income tax expenses, except that the deferred income taxes related to an adjustment of goodwill
due to a business merger or the transactions and matters directly included in the owner's equity are included in
the owner's equity.
The Company shall recognize deferred income tax with the balance sheet liability method according to the
temporary differences between the book value of assets and liabilities and their tax bases at the balance sheet
date.
Relevant deferred income tax liabilities shall be recognized for each taxable temporary difference unless the
taxable temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction
with the following features: The transaction should not be a business merger and does not impact accounting
profit or taxable income at the time of the transaction (except for individual transactions with equal taxable
temporary differences and deductible temporary differences resulting from the initial recognition of assets and
liabilities);
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(2) For taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures,
it can control the time of the reversal of the temporary difference and, likely, the temporary difference will not
reverse in the foreseeable future.
For deductible temporary differences as well as the deductible losses and tax deductions that can be carried
forward to the next year, except for the deductible temporary differences incurred in following transactions, the
Company recognizes the deferred income tax assets to the extent that it is likely that future taxable income will
be available for deducting the deductible temporary differences, deductible losses, and tax deductions:
(1) The transaction should not be a business merger and does not impact accounting profit or taxable income at
the time of the transaction (except for individual transactions with equal taxable temporary differences and
deductible temporary differences resulting from the initial recognition of assets and liabilities);
(2) For deductible temporary differences associated with investments in subsidiaries, associates, and joint
ventures, if the following conditions are satisfied at the same time, corresponding deferred tax assets are
recognized: The temporary difference will likely be reversed in the foreseeable future and taxable income will
likely be available in the future for deducting the deductible temporary differences.
On the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are
expected to apply to the period when the asset is recovered or the liability is settled and reflect the income tax
effect of the method of the expected recovery of assets and settlement of liability on the balance sheet date.
On the balance sheet date, the Company reviews the book value of deferred tax assets. If it is likely that
sufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets,
the book value of the deferred tax assets will be reduced. Any such reduction in amount is reversed to the extent
that it becomes probable that sufficient taxable incomes will be available.
On a balance sheet date, the deferred income tax assets and liabilities are presented in the net value after
offsetting when the following conditions are met at the same time:
(1) The taxpayer has the legal right of income tax assets and liabilities in the current period settled at the net
amount;
(2) Deferred income tax assets and deferred income tax liabilities are related to the income taxes levied by the
same tax collection agency on the same taxpayer within the Company.
26. Leases
(1) Accounting treatment method for lease as the lessee
On the commencement date of the lease term, the Company shall recognize the right-of-use assets and the lease
liabilities for all leases, except for the short-term leases and low-value asset leases that are subject to simplified
treatment.
Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in lease
according to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicit
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in lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. Lease
payments include fixed payments and substantially fixed payments; the amount related to lease incentive (if any)
shall be deducted; variable lease payments that depend on an index or rate; the exercise price of a purchase
option, provided that the lessee reasonably determines that the option will be exercised; payments required to
exercise the lease termination option, provided that the lease term reflects that the lessee will exercise the lease
termination option; payments expected to be made based on the guaranteed residual value provided by the
lessee. The interest expenses of the lease liabilities within each lease term shall be calculated subsequently
according to the fixed periodic rate and included in current profits and losses. The variable lease payment that is
not included in the measurement of lease liabilities is included in the current profit and loss when it actually
occurs.
Short-term lease
Short-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of
the lease term, except for the lease containing the purchasing right.
The Company includes the payment amount of short-term leases into relevant asset costs or current profits and
losses by the straight-line method at each period within the lease term.
For short-term leases, the Company selects the above-simplified treatment method for the items meeting the
short-term lease conditions in the following asset types according to the category of leased assets.
Low-value asset lease
A low-value asset lease refers to a lease with a value lower than RMB 40,000 when an individual leased asset is
brand new.
The Company includes the payment amount of low-value asset leases into relevant asset costs or current profits
and losses by the straight-line method at each period within the lease term.
For low-value asset leases, the Company selects the above simplified treatment method according to the specific
conditions of each lease.
Lease change
If the lease changes and meets the following conditions at the same time, the Company will take the lease
change as a separate lease for the accounting treatment: ① The lease change expands the lease scope by
increasing the right to use one or more leased assets, and ② The increased consideration is equivalent to the
amount by adjusting the separate price of the expanded lease scope according to the contract.
If the lease change is not taken as a separate lease for accounting treatment, the Company shall, on the effective
date of the lease change, reallocate the consideration of the changed contract, redetermine the lease term, and
remeasure the lease liabilities according to the changed lease payment and the present value calculated by the
revised discount rate.
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If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will
correspondingly reduce the book value of right-of-use assets and include relevant profits or losses from partial
or complete termination of the lease in current profits and losses.
If the lease liabilities are remeasured due to other lease changes, the Company will adjust the carrying amount
of right-of-use assets accordingly.
(2) Accounting treatment method for lease as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to the
ownership of the assets is recognized as a finance lease, and leases other than finance leases are recognized as
operating leases.
Financial lease
In a finance lease, at the commencement of the lease term, the Company takes the net investment in a lease as
the entry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteed
residual value and the present value of the lease receipts not yet received at the commencement of the lease
term discounted at the interest rate implicit in the lease. The Company, as the lessor, calculates and recognizes
interest income in each lease term at a fixed periodic rate. Variable lease payments obtained by the Company as
the lessor but not considered in the measurement of net investment in leases are recognized in current profits
and losses when actually incurred.
The derecognition and impairment of finance lease receivables shall be subject to accounting treatment
according to the Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of
Financial Instruments and the Accounting Standards for Business Enterprises No. 23—Transfer of Financial
Assets.
Operating leasing
Lease income from operating leases is included in current profits and losses by the Company as per the straight-
line method in different stages over the lease term. The occurred initial direct cost related to the operating lease
shall be capitalized, amortized within the lease term according to the same base with the recognition of rent
revenue, and included in the current profits and losses by stages. The variable lease receipts obtained by the
Company related to operating leases and not charged to the lease receipts shall be included in current profits and
losses when actually incurred.
Lease change
If there is a change in the operating lease, the Company will take it as a new lease from the effective date of the
change to carry out accounting treatment, and the lease receipts received in advance or receivable related to the
lease before the change will be regarded as the collected amount for the new lease.
If the finance lease changes and meets the following conditions, the Company will take the change as a separate
lease for accounting treatment: ① The change expands the lease scope by increasing the right to use one or
more leased assets; and ② The increased consideration is equivalent to the amount by adjusting the separate
price of the expanded lease scope according to the contract.
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If the change of finance lease is not accounted for as a separate lease, the Company shall deal with the changed
lease based on the following circumstances: ① If the change takes effect on the commencement date of the
lease and the lease is classified as an operating lease, the Company shall take it as a new lease for the
accounting treatment from the effective date of lease change and take the net lease investment made before the
effective date of the lease change as the book value of the leased asset; ② If the change takes effect on the
commencement date of the lease and the lease is classified as a finance lease, the Company shall carry out
accounting treatment according to the regulations on modifying or renegotiating contracts described in
Accounting Standards for Enterprises No. 22 — Recognition and Measurement of Financial Instruments.
27. Other significant accounting policies and accounting estimates
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based
on historical experience and other factors, including reasonable expectations for future events. Significant
accounting estimates and critical assumptions that may lead to a major adjustment of the book value of assets
and liabilities in the next accounting year are listed as follows:
Classification of financial assets
Significant judgments involved in determining the classification of financial assets of the Company include the
analysis of business models and contract cash flow characteristics.
The Company determines the business model of managing financial assets at the level of financial asset
portfolios, considering the way of evaluating and reporting financial asset performance to key executives, the
risks affecting the financial asset performance and their management methods, and the way for the relevant
business management personnel to obtain the remuneration.
When assessing whether the contract cash flow of financial assets is consistent with the basic loan arrangement,
the Company has the following main judgments: Whether the principal may change in the time distribution or
amount in the duration due to prepayment and other reasons; whether the interest includes only the time value
of money, credit risks, other basic borrowing risks, and consideration with costs and profits. For example,
whether the amount paid in advance only reflects the unpaid principal and the interest based on the unpaid
principal, and the reasonable compensation paid due to the early termination of the contract.
Measurement of expected credit loss of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the default risk exposure and
the expected credit loss rate of accounts receivable and determines the expected credit loss rate based on default
probability and the loss given default. In determining the expected credit loss rate, the Company uses the
internal historical credit loss experience and other data and adjusts the historical data according to the current
situation and forward-looking information. When considering forward-looking information, the indicators used
by the Company include risks of economic downturns as well as changes in the external market environment,
technological environment, and customer conditions. The Company regularly monitors and reviews the
assumptions related to the calculation of the expected credit loss.
Deferred tax assets
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To the extent that there will probably be sufficient taxable profits to offset the losses, deferred income tax assets
shall be recognized based on all unused tax losses. This requires the management to use a large number of
judgments to estimate the time and amount of future taxable profits and determine the amount of deferred
income tax assets that should be recognized in combination with tax planning strategies.
Determination of the fair value of unlisted equity investment
The fair value of unlisted equity investments is the estimated future cash flows discounted using current
discount rates for projects with similar terms and risk characteristics. This valuation involves uncertainty
because it requires the Company to estimate expected future cash flows and discount rates. Under limited
circumstances, if the information for determining the fair value is insufficient or the range of possible estimates
of fair value is wide, and the cost represents the best estimate for the fair value within this range, such cost
could represent its appropriate estimate for the fair value within this distribution range.
28. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable Not applicable
(2) Changes in significant accounting estimates
□ Applicable Not applicable
(3) Conditions of the first implementation of new accounting standards from 2024 to adjust the relevant items in financial
statements at the beginning of the first implementation year
□ Applicable Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax category Tax basis Tax rate
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax sales amount multiplied by the applicable 13%, 9%, 5%, 6%, 3%
tax rate less deductible input tax of the
current period)
Urban maintenance and construction tax Actually paid turnover tax 7%
Corporate income tax Taxable income 25%, 20%
For taxation according to price, the taxes
payable shall be calculated based on
1.2% of the remaining price after
deducting 30% of the original value of
Property tax 1.2%, 12%
house properties; for taxation according
to lease, the taxes payable shall be
calculated based on 12% of the rent
revenue.
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Educational surcharge Actually paid turnover tax 3%
Local educational surcharges Actually paid turnover tax 2%
If there are taxpayers with different enterprise income tax rates, the disclosure shall be as follows.
Name of taxable entity Income tax rate
Shenzhen Tellus Chuangying Technology Co., Ltd. 20
Shenzhen Bao'an Shiquan Industry Co., Ltd. 20
Shenzhen SDG Tellus Real Estate Co., Ltd. 20
Shenzhen Automobile Industry Supply and Marketing
20
Company
Shenzhen Xinyongtong Motor Vehicle Inspection Equipment
20
Co., Ltd.
Shanghai Fanyue Diamond Co., Ltd. 20
Other taxable entities other than the above 25
2. Tax preference
① Corporate income tax
According to the Announcement on Further Implementing Preferential Income Tax Policies for Small and
Micro Enterprises (Announcement [2022] No.13 of the Ministry of Finance and the State Taxation
Administration), from January 1, 2022 to December 31, 2024, for small micro-profit enterprises, the portion of
their annual taxable income exceeding RMB 1 million but not exceeding RMB 3 million shall be calculated at a
reduced rate of 25% in their taxable income, and they shall pay enterprise income tax at a rate of 20%.
According to the Announcement on Implementing Preferential Income Tax Policies for Small and Micro
Enterprises and Individual Businesses (Announcement No.6 [2023] of the Ministry of Finance and the State
Administration of Taxation), from January 1, 2023 to December 31, 2024, the portion of their annual taxable
income but not exceeding RMB 1 million shall be calculated at a reduced rate of 25% in their taxable income,
and they shall pay enterprise income tax at a rate of 20%. The subsidiaries of the Company, including Tellus
Chuangying, Bao'an Shiquan, Tellus Real Estate Company, Automobile Supply and Marketing Company,
Shanghai Fanyue, and Xinyongtong Testing, enjoy the above tax preferences.
② Value-added tax
According to the Notice of the State Administration of Taxation on Adjusting the Relevant Tax Policies of
Diamonds and Shanghai Diamond Exchange (CS [2006] No. 65), taxpayers are exempted from import VAT for
rough diamonds sold through Shanghai Diamond Exchange to the domestic market; for finished diamonds sold
by taxpayers through Shanghai Diamond Exchange to the domestic market, the part with an actual import VAT
burden exceeding 4% shall be refunded upon collection by the customs. In the domestic link, taxpayers shall
deduct the input tax based on the VAT amount indicated on the tax payment receipt issued by the customs.
After taxpayers follow the policy of VAT exemption and refund-upon-collection for diamonds sold to the
domestic market through the Shanghai Diamond Exchange, diamonds sold to the domestic market will be
managed by the customs per current regulations when they leave the Shanghai Diamond Exchange. Shanghai
Fanyue Diamond Co., Ltd., the Company's subsidiary, is a member of the Shanghai Diamond Exchange and
enjoys the above tax preferences when importing finished diamonds through the Shanghai Diamond Exchange.
100
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VII. Notes to Consolidated Financial Statements
1. Cash at bank and on hand
Unit: RMB
Item Period-end balance Period-beginning balance
Cash on hand 324.59 17,215.98
Deposit in bank 119,615,641.97 120,961,253.61
Other monetary funds 108,989,255.73 99,362,492.05
Total 228,605,222.29 220,340,961.64
The details of restricted cash at bank and on hand are as follows:
Balance at the end of the
Item Period-end balance
previous year
Gold leasing security
40,477,138.89 51,328,583.35
deposits and interests
Futures and options account
4,104,642.60 8,188,990.60
margin
Amount under judicial
600,000.00
control
Margin payable security
28,123,726.04
deposits and interests
Total 72,705,507.53 60,117,573.95
2. Trading financial assets
Unit: RMB
Item Period-end balance Period-beginning balance
Financial assets at fair value through
377,514,483.03 206,294,931.94
profit or loss
Including:
Structured deposits and finance products 302,715,467.76 131,495,916.67
Equity instrument investment 74,799,015.27 74,799,015.27
Including:
Total 377,514,483.03 206,294,931.94
3. Derivative financial assets
Unit: RMB
Item Period-end balance Period-beginning balance
Hedging instruments 0.00 298,320.00
Total 298,320.00
4. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
101
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Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 198,642,445.18 100,107,755.14
1-2 years 555,132.97 555,132.97
Over 3 years 48,749,943.16 48,749,943.16
Over 5 years 48,749,943.16 48,749,943.16
Total 247,947,521.31 149,412,831.27
(2) Disclosure by bad debt accrual method
Unit: RMB
Period-end balance Period-beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor Provisio Provisio
y Book Book
Proporti n value Proporti n value
Amount Amount Amount Amount
on proporti on proporti
on on
Account
s
receivab
le with
48,746,5 48,746,5 48,746,5 48,746,5
provisio 19.66% 100.00% 32.63% 100.00%
83.16 83.16 83.16 83.16
n for bad
debts on
a single
basis
Includ
ing:
Account
s
receivab
le for
which 199,200, 1,781,70 197,419, 100,666, 1,030,49 99,635,7
80.34% 0.89% 67.37% 1.02%
provisio 938.15 5.61 232.54 248.11 6.59 51.52
n for bad
debts is
made by
portfolio
Includ
ing:
Lease
and
39,575,6 436,870. 39,138,8 41,303,6 436,870. 40,866,7
other 15.96% 1.10% 27.64% 1.06%
89.70 51 19.19 39.85 51 69.34
business
portfolio
Jewelry
sales 159,625, 1,344,83 158,280, 59,362,6 593,626. 58,768,9
64.38% 0.84% 39.73% 1.00%
business 248.45 5.10 413.35 08.26 08 82.18
portfolio
247,947, 50,528,2 197,419, 149,412, 49,777,0 99,635,7
Total 100.00% 20.38% 100.00% 33.32%
521.31 88.77 232.54 831.27 79.75 51.52
Category name of bad debt provision made on an individual basis:
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Unit: RMB
Period-beginning balance Period-end balance
Name Bad-debt Bad-debt Provision Reasons for
Book balance Book balance
provision provision proportion provision
Long account
Shenzhen Jinlu receivable age,
Industry & 9,846,607.00 9,846,607.00 9,846,607.00 9,846,607.00 100.00% and expected to
Trade Co., Ltd. be
unrecoverable
Guangdong Long account
Zhanjiang receivable age,
Samsung 4,060,329.44 4,060,329.44 4,060,329.44 4,060,329.44 100.00% and expected to
Automobile be
Co., Ltd. unrecoverable
Long account
receivable age,
Wang
2,370,760.40 2,370,760.40 2,370,760.40 2,370,760.40 100.00% and expected to
Changlong
be
unrecoverable
Huizhou
Long account
Jiandacheng
receivable age,
Road and
2,021,657.70 2,021,657.70 2,021,657.70 2,021,657.70 100.00% and expected to
Bridge
be
Engineering
unrecoverable
Co., Ltd.
Long account
Guangdong receivable age,
GW Holdings 1,862,000.00 1,862,000.00 1,862,000.00 1,862,000.00 100.00% and expected to
Group Co., Ltd. be
unrecoverable
Long account
receivable age,
Jiangling
1,191,059.98 1,191,059.98 1,191,059.98 1,191,059.98 100.00% and expected to
Motors Factory
be
unrecoverable
Long account
Yangjiang
receivable age,
Automobile
1,150,000.00 1,150,000.00 1,150,000.00 1,150,000.00 100.00% and expected to
Trading Co.,
be
Ltd.
unrecoverable
Long account
receivable age,
Others 26,244,168.64 26,244,168.64 26,244,168.64 26,244,168.64 100.00% and expected to
be
unrecoverable
Total 48,746,583.16 48,746,583.16 48,746,583.16 48,746,583.16
Category name of bad debt provision made on a portfolio basis: Leasing and other business portfolio
Unit: RMB
Period-end balance
Name
Book balance Bad-debt provision Provision proportion
Within 1 year 39,017,196.73 407,433.86 1.04%
1-2 years 555,132.97 27,756.65 5.00%
2-3 years
Over 3 years 3,360.00 1,680.00 50.00%
103
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Total 39,575,689.70 436,870.51
Category name of bad debt provision made on a portfolio basis: Jewelry sales business portfolio
Unit: RMB
Period-end balance
Name
Book balance Bad-debt provision Provision proportion
Within 1 year (inclusive) 159,625,248.45 1,344,835.10 0.84%
Total 159,625,248.45 1,344,835.10
Whether to accrue bad debt provision of accounts receivable according to expected credit loss:
Applicable □ Not applicable
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Bad-debt provision Expected credit losses throughout the duration throughout the duration Total
for the next 12 months (no credit impairment (credit impairment has
occurs) occurred)
Balance on January 1,
1,030,496.59 48,746,583.16 49,777,079.75
2024
Balance on January 1,
2024 in the current
period
Provision in the current
1,297,727.90 1,297,727.90
period
Reversal in the current
546,518.88 546,518.88
period
Balance as of June 30,
1,781,705.61 48,746,583.16 50,528,288.77
2024
(3) Bad debt provision provided, recovered, or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Period- Accounts Period-end
Category beginning recovered or
Provision Write-off Others balance
balance transferred
back
Provision for
bad debts made
48,746,583.16 48,746,583.16
on an
individual basis
Provision for
bad debts made
1,030,496.59 1,297,727.90 546,518.88 1,781,705.61
on a portfolio
basis
Total 49,777,079.75 1,297,727.90 546,518.88 0.00 0.00 50,528,288.77
104
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(4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers
Unit: RMB
Period-end balance
of bad debt
Proportion in total
Period-end balance proportion of
Period-end balance ending balance of
Period-end balance of accounts accounts
Company name of accounts accounts
of contract assets receivable and receivable and
receivable receivable and
contract assets impairment
contractual assets
provision of
contractual assets
Guojin Gold Co.,
44,144,845.00 44,144,845.00 17.80% 441,448.45
Ltd.
Shenzhen
Yongjitai Jewelry 22,367,000.00 22,367,000.00 9.02% 223,670.00
Co., Ltd.
Shenzhen
Yuepengjin E-
19,649,000.00 19,649,000.00 7.92% 196,490.00
commerce Co.,
Ltd.
Xieruilin
(Guangzhou) 16,042,263.46 16,042,263.46 6.47% 160,422.63
Jewelry Co., Ltd.
Shenzhen
Xingguangda
14,992,020.00 14,992,020.00 6.05% 149,920.20
Jewelry Industrial
Co., Ltd.
Total 117,195,128.46 117,195,128.46 47.26% 1,171,951.28
5. Other receivables
Unit: RMB
Item Period-end balance Period-beginning balance
Dividends receivable 1,305,581.86 1,305,581.86
Other receivables 25,082,028.01 11,077,935.06
Total 26,387,609.87 12,383,516.92
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or the investee) Period-end balance Period-beginning balance
China Pufa Machinery Industry Co., Ltd. 1,305,581.86 1,305,581.86
Total 1,305,581.86 1,305,581.86
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Project (or the Whether impairment
Period-end balance Account receivable age Reason for no recovery
investee) has occurred and the
105
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basis for determining
impairment
The financial and
operating conditions of
China Pufa Machinery the Company are
1,305,581.86 1-2 years Not paid yet
Industry Co., Ltd. normal, and the
dividends receivable
are not impaired.
Total 1,305,581.86
3) Classification and disclosure through the method for recognizing bad debt
□ Applicable Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of payment Period-end book balance Period-beginning book balance
Temporary payments receivable 61,647,633.85 58,543,570.60
Deposits and security deposits 14,098,889.56 3,092,523.97
Total 75,746,523.41 61,636,094.57
(2) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 20,211,338.45 6,100,909.61
1-2 years 982,244.61 982,244.61
2-3 years 192,615.11 192,615.11
Over 3 years 54,360,325.24 54,360,325.24
3-4 years 249,895.55 249,895.55
Over 5 years 54,110,429.69 54,110,429.69
Total 75,746,523.41 61,636,094.57
3) Classification and disclosure through the method for recognizing bad debt
Applicable □ Not applicable
Unit: RMB
Period-end balance Period-beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor Provisio Provisio
y Book Book
Proporti n value Proporti n value
Amount Amount Amount Amount
on proporti on proporti
on on
Provisio 52,224,5 50,017,6 2,206,86 52,224,5 50,017,6 2,206,86
68.95% 95.77% 84.73% 95.77%
n for bad 55.56 91.31 4.25 55.56 91.31 4.25
106
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debts
made on
an
individu
al basis
Including:
Provisio
n for bad
debts
23,521,9 646,804. 22,875,1 9,411,53 540,468. 8,871,07
made on 31.05% 2.75% 15.27% 5.74%
67.85 09 63.76 9.01 20 0.81
a
portfolio
basis
Including:
Account
receivab 9,423,07 433,367. 8,989,71 6,319,01 433,367. 5,885,64
12.44% 4.60% 10.25% 6.86%
le age 8.29 62 0.67 5.04 62 7.42
portfolio
Portfolio
of
deposit
and 14,098,8 213,436. 13,885,4 3,092,52 107,100. 2,985,42
18.61% 1.51% 5.02% 3.46%
security 89.56 47 53.09 3.97 58 3.39
deposit
receivab
le
75,746,5 50,664,4 25,082,0 61,636,0 50,558,1 11,077,9
Total 100.00% 66.89% 100.00% 82.03%
23.41 95.40 28.01 94.57 59.51 35.06
Category name of bad debt provision made on an individual basis:
Unit: RMB
Period-beginning balance Period-end balance
Name Bad-debt Bad-debt Provision Reasons for
Book balance Book balance
provision provision proportion provision
Long account
Provision for
receivable age,
bad debts made
52,224,555.56 50,017,691.31 52,224,555.56 50,017,691.31 95.77% and expected to
on an
be
individual basis
unrecoverable
Total 52,224,555.56 50,017,691.31 52,224,555.56 50,017,691.31
Category name of bad debt provision made on a portfolio basis:
Unit: RMB
Period-end balance
Name
Book balance Bad-debt provision Provision proportion
Account receivable age
9,423,078.29 433,367.62 4.60%
portfolio
Portfolio of deposit and
14,098,889.56 213,436.47 1.51%
security deposit receivable
Total 23,521,967.85 646,804.09
Accrue bad debt provision of accounts receivable according to expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Bad-debt provision Expected credit loss Expected credit loss Total
Expected credit losses
throughout the duration throughout the duration
107
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for the next 12 months (no credit impairment (credit impairment has
occurs) occurred)
Balance on January 1,
540,468.20 0.00 50,017,691.31 50,558,159.51
2024
Balance on January 1,
2024 in the current
period
Provision in the current
135,034.32 0.00 0.00 135,034.32
period
Reversal in the current
28,698.43 0.00 0.00 28,698.43
period
Balance as of June 30,
646,804.09 0.00 50,017,691.31 50,664,495.40
2024
Changes in book balance with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
4) Bad debt provision provided, recovered, or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Period- Accounts Period-end
Category beginning recovered or Write-off or
Provision Others balance
balance transferred verification
back
Bad-debt
50,558,159.51 135,034.32 28,698.43 0.00 50,664,495.40
provision
Total 50,558,159.51 135,034.32 28,698.43 0.00 0.00 50,664,495.40
5) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Period-end balance
Account
Company name Nature of payment Period-end balance ending balance of of provision for
receivable age
other receivables bad debts
Shanghai Gold
Coin Investment Security deposits 11,243,890.60 Within 1 year 14.84% 112,438.91
Co., Ltd.
China Automobile
South China
Intercourse funds 9,832,956.37 Over 3 years 12.98% 9,832,956.37
Automobile Sales
Co., Ltd.
Shenzhen Nanfang
Industry and Trade Intercourse funds 7,359,060.75 Over 3 years 9.72% 7,359,060.75
Industrial Co., Ltd.
Shenzhen
Zhonghao (Group) Intercourse funds 5,000,000.00 Over 3 years 6.60% 5,000,000.00
Co., Ltd.
Shenzhen Kaifeng Intercourse funds 4,413,728.50 Over 3 years 5.83% 2,206,864.25
108
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Special
Automobile
Industry Co., Ltd.
Total 37,849,636.22 49.97% 24,511,320.28
6. Prepayment items
(1) Prepayment items listed by account receivable age
Unit: RMB
Period-end balance Period-beginning balance
Account receivable age
Amount Proportion Amount Proportion
Within 1 year 1,265,252.78 95.58% 38,395,924.17 99.85%
1-2 years 45,984.79 3.47% 45,984.79 0.12%
2-3 years 0.00% 0.00%
Over 3 years 12,525.94 0.95% 12,525.94 0.03%
Total 1,323,763.51 38,454,434.90
(2) Prepayment items with top five period-end balance collected as per the object of prepayment
Proportion in the total period-end balance
Company name Balance as of June 30, 2024
of prepayment (%)
ISSTech Information Technology Co.,
593,247.17 44.82%
Ltd.
Shenzhen Gas Corporation Ltd. 177,963.50 13.44%
Shenzhen Jurongfeng Technology Co.,
175,689.32 13.27%
Ltd.
Huaqiangbei Branch, Shenzhen
Shengshi Kaiyuan Automobile Sales 169,800.00 12.83%
Co., Ltd.
Shenzhen Youyu Construction Labor
100,000.00 7.55%
Service Co., Ltd.
Total 1,216,699.99 91.91%
7. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
No
(1) Inventory classification
Unit: RMB
Period-end balance Period-beginning balance
Provision for Provision for
decline in the decline in the
value of value of
Item inventories or inventories or
Book balance Book value Book balance Book value
impairment impairment
provisions of provisions of
contract contract
performance performance
109
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cost cost
Raw materials 35,581,620.46 15,028,496.75 20,553,123.71 104,324,596.41 15,028,496.75 89,296,099.66
Goods in stocks 8,789,356.39 8,789,356.39 8,789,356.39 8,789,356.39
Hedged items 68,886,072.56 68,886,072.56 85,802,395.07 85,802,395.07
Consigned
processing 703,719.27 703,719.27 327,656.05 327,656.05
materials
Goods sold on
a commission 1,994,622.56 1,994,622.56 2,999,683.10 2,999,683.10
basis
Total 115,955,391.24 23,817,853.14 92,137,538.10 202,243,687.02 23,817,853.14 178,425,833.88
The Company shall abide by the disclosure requirements for "jewelry-related business" in the Guidelines of Shenzhen Stock
Exchange for Self-Regulatory Supervision of Listed Companies No. 3 —Industry Information Disclosure.
(2) Provision for decline in the value of inventories/contract performance cost impairment
Unit: RMB
Amount increase in the current
Period- Decrease in the current period
period Period-end
Item beginning
Reversal or balance
balance Provision Others Others
write-off
Raw materials 15,028,496.75 15,028,496.75
Goods in stocks 8,789,356.39 8,789,356.39
Total 23,817,853.14 23,817,853.14
8. Non-current assets due within one year
Unit: RMB
Item Period-end balance Period-beginning balance
Other debt investments due within one
25,510,300.00 55,206,250.00
year
Total 25,510,300.00 55,206,250.00
(1) Creditors' investment due within one year
□ Applicable Not applicable
(2) Other debt investments due within one year
Applicable □ Not applicable
1) Other debt investments due within one year
Unit: RMB
Changes in Accumulat
Accumulat
Period- fair value ed
Accrued Period-end ed changes
Item beginning in the Costs impairment Remarks
interest balance in fair
balance current provision
value
period recognized
110
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in other
comprehen
sive
income
Certificates
of deposit
and 55,206,250. 25,510,300. 25,000,000.
578,950.00 510,300.00
interests 00 00 00
due within
one year
55,206,250. 25,510,300. 25,000,000.
Total 578,950.00 510,300.00
00 00 00
9. Other current assets
Unit: RMB
Item Period-end balance Period-beginning balance
Input tax to be deducted 26,878,080.49 27,618,761.58
Taxes pre-paid 263,431.62 1,423,927.12
Certificates of deposit due within one
3,252,918.08 75,791,108.89
year
Total 30,394,430.19 104,833,797.59
10. Other debt investments
(1) Information on other debt investments
Unit: RMB
Accumula
ted
Changes impairme
Accumula
in fair nt
Period- Interest Period- ted
Accrued value in provision
Item beginning adjustmen end Costs changes Remarks
interest the recognize
balance t balance in fair
current d in other
value
period comprehe
nsive
income
Transfera
ble large-
67,627,94 1,706,900 105,986,0 104,141,6 1,844,400
sum
8.60 .00 78.92 78.92 .00
certificate
of deposit
67,627,94 1,706,900 105,986,0 104,141,6 1,844,400
Total
8.60 .00 78.92 78.92 .00
Changes in provision for impairment of other debt investments in the current period
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
Transferable large-sum
67,627,948.60 63,868,430.32 25,510,300.00 105,986,078.92
certificate of deposit
Total 67,627,948.60 63,868,430.32 25,510,300.00 105,986,078.92
111
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11. Other equity instrument investments
Unit: RMB
Reasons for
being
Gains Losses measured
Gains Losses
accumulate accumulate at
included in included in Dividend
d into other d into other designated
other other income
Period- comprehen comprehen fair value
Project comprehen comprehen recognized Period-end
beginning sive sive with their
name sive sive in the balance
balance income at income at changes
income in income in current
the end of the end of included in
the current the current period
the current the current other
period period
period period comprehen
sive
income
Investment
in unlisted
383,317.67 383,317.67
equity
instruments
Total 383,317.67 383,317.67
12. Long-term receivables
(1) Long-term receivables
Unit: RMB
Period-end balance Period-beginning balance
Discount rate
Item Bad-debt Bad-debt
Book balance Book value Book balance Book value range
provision provision
Transactions
with related 6,146,228.91 6,146,228.91 6,146,228.91 6,146,228.91
parties
Total 6,146,228.91 6,146,228.91 6,146,228.91 6,146,228.91
(2) Disclosure by bad debt accrual method
Unit: RMB
Period-end balance Period-beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor Provisio Provisio
y Book Book
Proporti n value Proporti n value
Amount Amount Amount Amount
on proporti on proporti
on on
Provisio
n for bad
debts
6,146,22 6,146,22 6,146,22 6,146,22
made on 100.00% 100.00% 100.00% 100.00%
8.91 8.91 8.91 8.91
an
individu
al basis
112
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Including:
Including:
6,146,22 6,146,22 6,146,22 6,146,22
Total 100.00% 100.00% 100.00% 100.00%
8.91 8.91 8.91 8.91
(3) Bad debt provision provided, recovered, or reversed in the current period
Unit: RMB
Amount of change during the current period
Period- Accounts Period-end
Category beginning recovered or Write-off or
Provision Others balance
balance transferred verification
back
Bad-debt
6,146,228.91 6,146,228.91
provision
Total 6,146,228.91 6,146,228.91
13. Long-term equity investments
Unit: RMB
Changes in the current period
Period Invest
Period - ment Adjust Period
- beginn Cash Period -end
profit ment
beginn ing divide -end balanc
or loss to
Investe ing balanc Additi Reduc Chang nd or Provisi balanc e of
recogn other
e balanc e of onal ed es in profit on for e impair
ized compr Others
e impair invest invest other declare impair (book ment
throug ehensi
(book ment ment ment equity d to be ment value) provisi
h the ve
value) provisi distrib on
equity incom
on uted
metho e
d
I. Joint ventures
Shenz
hen
Tellus-
Gmon 49,250 15,000 41,530
7,279,
d ,845.0 ,000.0 ,678.3
833.26
Invest 6 0 2
ment
Co.,
Ltd.
Shenz
hen
Telixin
13,302 13,458
g 156,03
,311.6 ,348.6
Invest 7.06
0 6
ment
Co.,
Ltd.
62,553 15,000 54,989
Subtot 7,435,
,156.6 ,000.0 ,026.9
al 870.32
6 0 8
113
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II. Associates
Shenz
hen
Renfu
Tellus 13,958 12,443 26,401
Autom ,330.9 ,247.0 ,577.9
obiles 1 8 9
Servic
e Co.,
Ltd.
Shenz
hen
Xinyo
ngtong
Oil
Pump
and
Enviro
nment
al
Protect
ion
Co.,
Ltd.
Shenz
hen
Xinyo
ngtong
Consul
ting
Co.,
Ltd.
Shenz
hen
Tellus
Autom
obile
Servic
e
Chain
Co.,
Ltd.
Shenz
hen
Xinyo
ngtong
Autom
obile
Servic
e Co.,
Ltd.
Shenz
hen
Yongt
ong
Xinda
Testin
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g
Equip
ment
Co.,
Ltd.
Hunan
Chang
yang 1,810,
Industr 540.70
ial Co.,
Ltd.
Shenz
hen
Jieche
ng 3,225,
Electro 000.00
nics
Co.,
Ltd.
Shenz
hen
Xianda
o New 4,751,
Materi 621.62
als
Co.,
Ltd.
China
Autom
otive
Industr
y 400,00
Shenz 0.00
hen
Tradin
g Co.,
Ltd.
Shenz
hen
Univer
sal
500,00
Standa
0.00
rd
Parts
Co.,
Ltd.
Shenz
hen
China
Autom
obile
South 2,250,
China 000.00
Autom
obile
Sales
Co.,
Ltd.
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Shenz
hen
Bailiy
uan 1,320,
Power 000.00
Supply
Co.,
Ltd.
Shenz
hen
Yimin
200,00
Auto
1.10
Tradin
g Co.,
Ltd.
Shenz
hen
Torch
Spark 632,63 632,63 17,849
Plug 6.00 6.00 .20
Industr
y Co.,
Ltd.
Shenz
hen
Hanli
High
1,956,
Tech
000.00
Ceram
ics
Co.,
Ltd.
Shenz
hen
Nanfa
ng 6,700,
Autom 000.00
obile
Repair
Center
13,958 13,075 26,401 23,131
Subtot 632,63
,330.9 ,883.0 ,577.9 ,012.6
al 6.00
1 8 9 2
76,511 20,511 15,632 81,390 23,131
Total ,487.5 ,753.4 ,636.0 ,604.9 ,012.6
7 0 0 7 2
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses?
□ Applicable Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow?
□ Applicable Not applicable
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14. Investment properties
(1) Investment properties measured at cost
Applicable □ Not applicable
Unit: RMB
Buildings and Construction in
Item Land use right Total
structures progress
I. Original book value
1. Period-
1,104,591,317.70 95,667,082.86 1,200,258,400.56
beginning balance
2. Amount
increase in the current
year
(1)
Outsourcing
(2) Transfer
from inventory/fixed
assets/construction in
progress
(3) Increase
from business merger
3. Amount
decrease in the current
period
(1) Disposal
(2) Other
transfer-out
4. Period-end
1,104,591,317.70 95,667,082.86 0.00 1,200,258,400.56
balance
II. Accumulated
depreciation and
accumulated
amortization
1. Period-
185,791,265.90 6,329,792.86 192,121,058.76
beginning balance
2. Amount
increase in the current 14,894,477.21 1,151,581.06 16,046,058.27
year
(1) Provision
14,894,477.21 1,151,581.06 16,046,058.27
or amortization
3. Amount
decrease in the current
period
(1) Disposal
(2) Other
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transfer-out
4. Period-end
200,685,743.11 7,481,373.92 208,167,117.03
balance
III. Provision for
impairment
1. Period-
beginning balance
2. Amount
increase in the current
year
(1) Provision
3. Amount
decrease in the current
period
(1) Disposal
(2) Other
transfer-out
4. Period-end
balance
IV. Book value
1. Period-end
903,905,574.59 88,185,708.94 0.00 992,091,283.53
book value
2. Period-
918,800,051.80 89,337,290.00 0.00 1,008,137,341.80
beginning book value
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses?
□ Applicable Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow?
□ Applicable Not applicable
(2) Investment properties measured at fair value
□ Applicable Not applicable
(3) Investment properties whose property certificates are not obtained
Unit: RMB
Reasons for failure to obtain the property
Item Book value
certificate
The property ownership certificate has
CNNC office building 3,838,800.75 not been handled due to historical
reasons.
The property ownership certificate has
Building 12, Sungang 9,208.73 not been handled due to historical
reasons.
The property ownership certificate has
Shops in Building 12, Sungang 19,225.47 not been handled due to historical
reasons.
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Total 3,867,234.95
15. Fixed assets
Unit: RMB
Item Period-end balance Period-beginning balance
Fixed assets 74,890,303.79 78,935,843.49
Total 74,890,303.79 78,935,843.49
(1) Fixed assets
Unit: RMB
Machinery Offices and
Premises and Transportatio Electronic Fixed asset
Item and other Total
buildings n equipment equipment decoration
equipment equipment
I. Original
book value:
1.
Period- 218,581,348. 16,663,683.3 254,067,224.
2,086,527.73 7,418,557.34 1,141,459.06 8,175,648.79
beginning 20 4 46
balance
2.
Amount
increase in 113,771.82 6,798.66 120,570.48
the current
year
(1)
113,771.82 6,798.66 120,570.48
Purchase
(2)
Transfer
from
construction
in progress
(3)
Increase
from
business
merger
3.
Amount
decrease in 4,849.56 4,849.56
the current
period
(1)
Disposal or 4,849.56 4,849.56
scrapping
4.
218,581,348. 16,663,683.3 254,182,945.
Period-end 2,086,527.73 7,527,479.60 1,141,459.06 8,182,447.45
20 4 38
balance
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II.
Accumulated
depreciation
1.
Period- 149,723,225. 169,951,331.
7,731,863.65 1,751,569.49 4,843,137.73 860,076.33 5,041,458.95
beginning 51 66
balance
2.
Amount
increase in 2,936,269.76 490,640.64 22,772.28 350,972.22 363,480.46 4,164,135.36
the current
year
(1)
2,936,269.76 490,640.64 22,772.28 350,972.22 363,480.46 4,164,135.36
Provision
3.
Amount
decrease in 2,874.74 2,874.74
the current
period
(1)
Disposal or 2,874.74 2,874.74
scrapping
4.
152,659,495. 174,112,592.
Period-end 8,222,504.29 1,774,341.77 5,191,235.21 860,076.33 5,404,939.41
27 28
balance
III. Provision
for
impairment
1.
Period-
3,555,385.70 871,618.28 6,165.00 276,816.12 281,382.73 188,681.48 5,180,049.31
beginning
balance
2.
Amount
increase in
the current
year
(1)
Provision
3.
Amount
decrease in
the current
period
(1)
Disposal or
scrapping
4.
3,555,385.70 871,618.28 6,165.00 276,816.12 281,382.73 188,681.48 5,180,049.31
Period-end
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balance
IV. Book
value
1.
62,366,467.2 74,890,303.7
Period-end 7,569,560.77 306,020.96 2,059,428.27 0.00 2,588,826.56
3 9
book value
2.
Period- 65,302,736.9 78,935,843.4
8,060,201.41 328,793.24 2,298,603.49 0.00 2,945,508.36
beginning 9 9
book value
(2) Fixed assets leased out by operating lease
Unit: RMB
Item Book value at the end of the period
Premises and buildings 59,539,656.85
(3) Fixed assets whose property certificates are not obtained
Unit: RMB
Reasons for failure to obtain the property
Item Book value
certificate
The property ownership certificate has
Yongtong Building 20,993,115.61 not been handled due to historical
reasons.
The property ownership certificate has
Automobile Building 20,055,818.44 not been handled due to historical
reasons.
Underground parking lot of Tellus The property ownership certificate of the
7,194,383.00
Building parking lot cannot be handled.
The property ownership certificate has
3-5/F, Plants 1#, 2# and 3#, Taoyuan
2,624,489.41 not been handled due to historical
Road
reasons.
Unable to apply for a property ownership
Transfer floor(s) of Tellus Building 1,146,690.08
certificate
The property ownership certificate has
Building 16, Taohuayuan 945,697.62 not been handled due to historical
reasons.
The property ownership certificate has
Warehouse 685,198.81 not been handled due to historical
reasons.
The property ownership certificate has
1/F, Bao'an Commercial and Residential
491,644.59 not been handled due to historical
Building
reasons.
The property ownership certificate has
Shuibei Zhongtian Building 472,913.10 not been handled due to historical
reasons.
The property ownership certificate has
Warehouse of the Trade Department 45,478.45 not been handled due to historical
reasons.
The property ownership certificate has
Shops, Plants No. 5-7, Buxin 30,263.42 not been handled due to historical
reasons.
Songquan Apartment (mixed) 10,086.79 The property ownership certificate has
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not been handled due to historical
reasons.
The property ownership certificate has
Buxin Generator Room 5,994.58 not been handled due to historical
reasons.
The property ownership certificate has
Guest House on Renmin North Road 5,902.41 not been handled due to historical
reasons.
Total 54,707,676.31
(4) Impairment test of fixed assets
□ Applicable Not applicable
16. Construction in progress
Unit: RMB
Item Period-end balance Period-beginning balance
Construction in progress 15,159,796.57 7,279,570.05
Total 15,159,796.57 7,279,570.05
(1) Information on construction in progress
Unit: RMB
Period-end balance Period-beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Renovation of
the exhibition
hall and
treasury area of
5,889,728.96 5,889,728.96 4,740,393.23 4,740,393.23
the sunken area
on B1 of the
Tellus Jewelry
Building
Renovation
project for
16/F, Building
A and 17-18/F,
2,975,801.10 2,975,801.10
Building B of
the Tellus Gold
and Diamond
Building
Layout
adjustment
project at the
connection
2,212,300.55 2,212,300.55
point between
B1 and Shuibei
International
Center
Decoration
1,184,913.11 1,184,913.11
renovation
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project for 1/F,
Jewelry
Building
Reconstruction
and upgrading
of the Shuibei 808,507.65 808,507.65 808,507.65 808,507.65
Zhongtian
Building
Decoration
project for the
annex building
of the Tellus 108,945.00 108,945.00 108,945.00 108,945.00
Gold and
Diamond
Building
Other projects 1,979,600.20 1,979,600.20 1,621,724.17 1,621,724.17
Total 15,159,796.57 15,159,796.57 7,279,570.05 7,279,570.05
(2) Impairment provision for construction in progress in the current period
Unit: RMB
Period-beginning Increase in the Decrease in the Reason for
Item Period-end balance
balance current period current period provision
(3) Impairment test of projects under construction
□ Applicable Not applicable
17. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Premises and buildings Total
I. Original book value
1. Period-beginning balance 80,631,305.71 80,631,305.71
2. Amount increase in the current
year
3. Amount decrease in the current
period
4. Period-end balance 80,631,305.71 80,631,305.71
II. Accumulated depreciation
1. Period-beginning balance 8,726,589.21 8,726,589.21
2. Amount increase in the current
4,726,718.58 4,726,718.58
year
(1) Provision 4,726,718.58 4,726,718.58
3. Amount decrease in the current
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period
(1) Disposal
4. Period-end balance 13,453,307.79 13,453,307.79
III. Provision for impairment
1. Period-beginning balance
2. Amount increase in the current
year
(1) Provision
3. Amount decrease in the current
period
(1) Disposal
4. Period-end balance
IV. Book value
1. Period-end book value 67,177,997.92 67,177,997.92
2. Period-beginning book value 71,904,716.50 71,904,716.50
(2) Impairment test of right-of-use assets
□ Applicable Not applicable
18. Intangible assets
(1) Intangible assets
Unit: RMB
Non-patented Computer
Item Land use right Patent rights Trademark Total
technologies software
I. Original book
value
1. Period-
beginning 1,967,851.00 128,500.00 7,196,385.90 9,292,736.90
balance
2. Amount
increase in the 372,557.55 372,557.55
current year
(1)
372,557.55 372,557.55
Purchase
(2)
Internal R&D
(3)
Increase from
business
merger
3. Amount
decrease in the
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current period
(1)
Disposal
4. Period-
1,967,851.00 0.00 0.00 128,500.00 7,568,943.45 9,665,294.45
end balance
II.
Accumulated 0.00
amortization
1. Period-
beginning 802,676.49 110,987.78 4,463,302.02 5,376,966.29
balance
2. Amount
increase in the 51,785.53 2,112.63 226,492.35 280,390.51
current year
(1)
51,785.53 2,112.63 226,492.35 280,390.51
Provision
3. Amount
decrease in the
current period
(1)
Disposal
4. Period-
854,462.02 0.00 0.00 113,100.41 4,689,794.37 5,657,356.80
end balance
III. Provision
for impairment
1. Period-
beginning
balance
2. Amount
increase in the
current year
(1)
Provision
3. Amount
decrease in the
current period
(1)
Disposal
4. Period-
end balance
IV. Book value
1. Period-
1,113,388.98 0.00 0.00 15,399.59 2,879,149.08 4,007,937.65
end book value
2. Period-
beginning book 1,165,174.51 0.00 0.00 17,512.22 2,733,083.88 3,915,770.61
value
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(2) Impairment test of intangible assets
□ Applicable Not applicable
19. Long-term deferred expenses
Unit: RMB
Amount increase Amortization
Period-beginning Other decreased
Item in the current amount in the Period-end balance
balance amount
period current period
Decoration
38,392,179.02 5,518,897.27 3,448,584.09 40,462,492.20
engineering
Total 38,392,179.02 5,518,897.27 3,448,584.09 40,462,492.20
20. Deferred income tax assets/deferred income tax liabilities
(1) Deferred tax assets not offset
Unit: RMB
Period-end balance Period-beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Deductible losses 4,116,772.28 1,029,193.07 12,429,491.12 3,107,372.77
Provision for credit
35,059,422.28 8,764,855.57 35,059,422.28 8,764,855.57
impairment
Deferred income 687,408.75 171,852.19 687,408.75 171,852.19
Changes in the fair
value of trading 14,437,920.68 3,609,480.17 13,705,388.76 3,426,347.19
financial assets
Changes in the fair
value of other equity 9,793,299.53 2,448,324.88 9,793,299.53 2,448,324.88
instrument investments
Lease liabilities 79,671,619.30 19,917,904.83 79,671,619.30 19,917,904.83
Total 143,766,442.82 35,941,610.71 151,346,629.74 37,836,657.43
(2) Deferred tax liabilities not offset
Unit: RMB
Period-end balance Period-beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Accelerated
depreciation of fixed 205,244.72 51,311.18 562,445.00 140,611.25
assets
Time difference of
income tax due to
19,145,855.24 4,786,463.81 19,145,855.24 4,786,463.81
allocation of rent-free
period income
Measurement of
remaining equity fair 67,398,061.80 16,849,515.45 67,398,061.80 16,849,515.45
value
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Right-of-use assets 74,533,199.60 18,633,299.90 74,533,199.60 18,633,299.90
Total 161,282,361.36 40,320,590.34 161,639,561.64 40,409,890.41
(3) Deferred tax assets or liabilities presented in net amount after being offset
Unit: RMB
Amount of offsetting Mutual off-set amount Period-beginning
Period-end balance of
of deferred income tax of deferred tax assets balance of deferred tax
Item deferred tax assets or
assets against liabilities and liabilities at the assets or liabilities after
liabilities after offset
at the end of the period beginning of the period offset
Deferred tax assets 35,941,610.71 37,836,657.43
Deferred tax liabilities 40,320,590.34 40,409,890.41
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Period-end balance Period-beginning balance
Deductible temporary differences 123,519,997.09 123,519,997.09
Deductible losses 19,550,649.41 22,073,706.37
Total 143,070,646.50 145,593,703.46
(5) Deductible losses of unrecognized deferred tax assets will become mature and due in the following
years
Unit: RMB
Year Period-end amount Period-beginning amount Remarks
2025 3,230,232.35
2026 7,956,456.42 8,589,171.35
2027 4,821,009.13 4,821,009.13
2028 5,266,380.29 5,433,293.54
2029 1,506,803.57
Total 19,550,649.41 22,073,706.37
21. Other non-current assets
Unit: RMB
Period-end balance Period-beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid project
47,071,710.51 47,071,710.51 47,071,710.51 47,071,710.51
payment
Reclassification
of VAT debit 7,205,934.16 7,205,934.16 8,385,565.03 8,385,565.03
balance
Large-
denomination
certificates of
42,167,033.34 42,167,033.34 41,431,777.78 41,431,777.78
deposit and
interest due
over one year
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Prepaid
software 164,000.00 164,000.00
payment
Total 96,444,678.01 96,444,678.01 97,053,053.32 97,053,053.32
22. Assets with restricted ownership or right-of-use
Unit: RMB
Period end Period beginning
Item Book Restriction Book Restriction
Book value Restriction Book value Restriction
balance type balance type
Used for
Used for bank gold
bank gold leasing,
Cash at leasing, futures
72,705,507. 72,705,507. Security 60,117,573. 60,117,573. Security
bank and payable margin,
53 53 deposits 95 95 deposits
on hand notes, and and
futures judicial-
margin controlled
amounts
72,705,507. 72,705,507. 60,117,573. 60,117,573.
Total
53 53 95 95
23. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Period-end balance Period-beginning balance
Credit borrowing 160,119,111.11 145,131,694.44
Total 160,119,111.11 145,131,694.44
24. Trading financial liabilities
Unit: RMB
Item Period-end balance Period-beginning balance
Including:
Financial liabilities designated as
measured at fair value through profit or 36,858,570.74 56,881,954.76
loss
Including:
Gold leasing 36,858,570.74 56,881,954.76
Total 36,858,570.74 56,881,954.76
25. Derivative financial liabilities
Unit: RMB
Item Period-end balance Period-beginning balance
Hedging instruments 575,060.00 1,380.00
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Total 575,060.00 1,380.00
26. Notes payable
Unit: RMB
Category Period-end balance Period-beginning balance
Bank acceptance bill 28,000,000.00
Total 28,000,000.00
27. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Period-end balance Period-beginning balance
Purchase payment for goods and services 10,491,743.79 6,150,884.19
Payment for engineering equipment 114,112,061.16 129,683,530.20
Total 124,603,804.95 135,834,414.39
(2) Significant accounts payable with an account receivable age of over one year
Unit: RMB
Reasons for not repaying or carrying
Item Period-end balance
over
Shenzhen Yinglong Jian'an (Group) Co.,
28,298,954.80 Project(s) unsettled
Ltd.
China Construction First Building
7,341,720.70 Project(s) unsettled
(Group) Corporation Limited
Shenzhen Yinuo Construction
3,555,095.22 Project(s) unsettled
Engineering Co., Ltd.
Beijing Fugonglide Technology
1,038,109.61 Project(s) unsettled
Development Co., Ltd.
Shenzhen Building Decorating Group
787,548.52 Project(s) unsettled
Co., Ltd.
Total 41,021,428.85
28. Other payables
Unit: RMB
Item Period-end balance Period-beginning balance
Other payables 132,054,687.73 126,826,966.60
Total 132,054,687.73 126,826,966.60
(1) Other payables
1) Other payables presented by the nature of payment
Unit: RMB
129
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Item Period-end balance Period-beginning balance
Guarantee and security deposits 55,743,015.44 61,572,033.08
Associated intercourse funds 18,248,958.83 13,217,780.83
Withdrawal in advance 9,979,843.96 14,559,784.33
Temporary receipts payable 48,082,869.50 37,477,368.36
Total 132,054,687.73 126,826,966.60
2) Other significant accounts payable with an account receivable age of over one year or overdue
Unit: RMB
Reasons for not repaying or carrying
Item Period-end balance
over
Amount owed to related party
Hongkong Yujia Investment Limited 2,146,404.58
companies, not yet repaid
Total 2,146,404.58
29. Accounts collected in advance
(1) Presentation of accounts collected in advance
Unit: RMB
Item Period-end balance Period-beginning balance
Rent 9,428,923.84 4,306,567.65
Total 9,428,923.84 4,306,567.65
30. Contract liabilities
Unit: RMB
Item Period-end balance Period-beginning balance
Goods fees receivable in advance 3,549,355.25 2,628,855.25
Services fees receivable in advance 1,960,280.50 4,451,120.13
Total 5,509,635.75 7,079,975.38
31. Employee compensation payable
(1) Employee compensation payable
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
I. Short-term
33,425,356.15 25,652,764.93 21,234,263.81 37,843,857.27
compensation
II. Post-employment
benefits-defined 2,147,050.34 2,147,050.34 0.00
contribution plan
III. Dismissal benefits 72,490.10 72,490.10 0.00
Total 33,425,356.15 27,872,305.37 23,453,804.25 37,843,857.27
130
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(2) Presentation of short-term compensation
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
1. Wages, bonuses,
allowances, and 33,338,217.09 22,327,642.62 17,974,004.84 37,691,854.87
subsidies
2. Employee benefits 0.00
3. Social insurance
809,845.40 809,845.40 0.00
premiums
Including:
Medical insurance 675,065.34 675,065.34 0.00
premiums
Work-
related injury insurance 65,164.19 65,164.19 0.00
premiums
Maternity
69,615.87 69,615.87 0.00
insurance premiums
4. Housing provident
1,012.80 1,586,036.31 1,586,036.31 1,012.80
fund
5. Labor union funds
and staff education 626.26 431,285.51 369,803.79 62,107.98
funds
8. Others 85,500.00 497,955.09 494,573.47 88,881.62
Total 33,425,356.15 25,652,764.93 21,234,263.81 37,843,857.27
(3) Defined contribution plan
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
1. Basic endowment
2,031,314.15 2,031,314.15
insurance
2. Unemployment
115,736.19 115,736.19
insurance premium
Total 2,147,050.34 2,147,050.34 0.00
32. Taxes payable
Unit: RMB
Item Period-end balance Period-beginning balance
Value-added tax 1,592,103.44 1,753,636.75
Corporate income tax 9,362,933.66 7,692,722.34
Individual income tax 505,406.02 1,174,933.55
Urban maintenance and construction tax 47,779.64 89,600.86
Educational surcharge 27,707.89 79,842.74
Land use tax 224,037.74
Land value increment tax 17,386,832.46 17,386,832.46
131
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Stamp duty 434,366.59 526,135.54
Property tax 3,530,269.81
Other taxes 140,895.04 153,743.82
Total 33,252,332.29 28,857,448.06
33. Non-current liabilities due within one year
Unit: RMB
Item Period-end balance Period-beginning balance
Lease liabilities due within one year 7,155,499.75 7,304,647.32
Total 7,155,499.75 7,304,647.32
34. Other current liabilities
Unit: RMB
Item Period-end balance Period-beginning balance
Taxes of items to be written off 3,172,726.99 3,388,998.35
Total 3,172,726.99 3,388,998.35
35. Lease liabilities
Unit: RMB
Item Period-end balance Period-beginning balance
Lease payment 64,188,913.70 69,524,214.23
Total 64,188,913.70 69,524,214.23
36. Long-term payables
Unit: RMB
Item Period-end balance Period-beginning balance
Long-term payables 3,920,160.36 3,920,160.36
Total 3,920,160.36 3,920,160.36
(1) Long-term payables by the nature of payment
Unit: RMB
Item Period-end balance Period-beginning balance
Employee housing deposit 3,908,848.40 3,908,848.40
Grant for technology innovation projects 11,311.96 11,311.96
Total 3,920,160.36 3,920,160.36
37. Estimated liabilities
Unit: RMB
Item Period-end balance Period-beginning balance Reason for formation
Pending litigation 268,414.80 268,414.80 Pending litigation
Total 268,414.80 268,414.80
132
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38. Deferred income
Unit: RMB
Period-beginning Increase in the Decrease in the Reason for
Item Period-end balance
balance current period current period formation
Government
9,617,683.53 880,145.82 8,737,537.71 Asset-related
subsidy
Total 9,617,683.53 0.00 880,145.82 8,737,537.71
39. Share capital
Unit: RMB
Increase or decrease (+, -)
Period- Conversion
of the Period-end
beginning Issuance of Share
reserved Others Subtotal balance
balance new shares donation
funds into
shares
431,058,320. 431,058,320.
Total shares
00 00
40. Capital reserves
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
Capital premium (share
425,768,053.35 425,768,053.35
premium)
Other capital reserves 5,681,501.16 5,681,501.16
Total 430,866,408.50 430,866,408.50
41. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Less: Less:
Amount Amount
included in included in
other other
Amount comprehen comprehen
After-tax
Period- incurred sive sive Attributabl
amount Period-end
Item beginning before incomes in income in Less: e to the
attributable balance
balance income tax the the Income tax parent
to minority
in the previous previous expenses company
shareholder
current period but period and after tax
s
period transferred transferred
to profit to retained
and loss in earnings in
the current the current
period period
133
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I. Other
comprehen
sive
income - -
items not to 7,344,974.6 7,344,974.6
be 5 5
reclassified
into profits
and losses
Chang
es in the
fair value
- -
of other
7,344,974.6 7,344,974.6
equity
5 5
instrument
investment
s
II. Other
comprehen
sive
income
26,422.00 26,422.00
items to be
reclassified
into profits
and losses
Including:
Other
comprehen
sive
income
items to be
26,422.00 26,422.00
reclassified
into profits
and losses
through the
equity
method
Total other
- -
comprehen
7,318,552.6 7,318,552.6
sive
5 5
income
42. Surplus reserve
Unit: RMB
Period-beginning Increase in the current Decrease in the current
Item Period-end balance
balance period period
Statutory surplus
63,956,286.46 63,956,286.46
reserves
Total 63,956,286.46 63,956,286.46
134
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43. Undistributed profits
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the
685,342,592.62 590,605,394.67
previous period before adjustment
Undistributed profits at the end of the
685,342,592.62 590,605,394.67
period after adjustment
Add: Net profit attributable to owners of
76,662,479.69 44,139,962.93
the parent company during the period
Ordinary share dividends payable 13,362,807.92 12,069,632.96
Undistributed profits at the end of the
748,642,264.39 622,675,724.64
period
Breakdown of adjusted undistributed profits at the beginning of the period
1) Due to retroactive adjustment of ASBE and relevant new regulations, the affected undistributed profit at the beginning of the
period is RMB 0.00.
2) Due to changes in accounting policies, the affected undistributed profit at the beginning of the period is RMB 0.00.
3) Due to the correction of major accounting errors, the undistributed profit of RMB 0.00 at the beginning of the period was
affected.
4) Due to the change in the scope of consolidation caused by the same control, the undistributed profit of RMB 0.00 at the
beginning of the period was affected.
5) The amount of undistributed profits at the beginning of the period that was affected due to the total of other adjustments is RMB
0.00 .
44. Operating revenue and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Costs Revenue Costs
Main business 1,580,023,748.85 1,451,925,990.76 702,184,781.46 608,012,821.75
Other business 2,651,629.48 591,816.65
Total 1,580,023,748.85 1,451,925,990.76 704,836,410.94 608,604,638.40
Breakdown information of operating revenues and operating costs:
Unit: RMB
Classificati Segment 1 Segment 2 Total
on of Operating Operating Operating Operating Operating Operating Operating Operating
contract revenue cost revenue cost revenue cost revenue cost
Business 1,580,023,7 1,451,925,9 1,580,023,7 1,451,925,9
type 48.85 90.76 48.85 90.76
Including:
Wholesale
1,441,734,8 1,410,424,6 1,441,734,8 1,410,424,6
and retail
15.25 05.61 15.25 05.61
of jewelry
Leasing
138,078,04 41,501,385. 138,078,04 41,501,385.
and
9.35 15 9.35 15
services
Others 210,884.25 210,884.25
By
135
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operating
region
Including:
South 1,017,725,2 897,350,26 1,017,725,2 897,350,26
China 04.81 9.66 04.81 9.66
89,258,835. 87,765,772. 89,258,835. 87,765,772.
East China
53 74 53 74
North 426,593,37 421,213,39 426,593,37 421,213,39
China 2.53 3.61 2.53 3.61
Central 37,329,652. 36,682,757. 37,329,652. 36,682,757.
China 67 99 67 99
Other 9,116,683.3 8,913,796.7 9,116,683.3 8,913,796.7
regions 1 6 1 6
By market
or customer
type
Including:
By contract
type
Including:
By time of
transfer of
goods
Including:
By contract
term
Including:
By sales
channel
Including:
Total
45. Taxes and surcharges
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Urban maintenance and construction tax 1,233,347.07 625,625.14
Educational surcharge 893,173.74 446,539.19
Property tax 3,530,269.75 3,126,665.09
136
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Land use tax 197,577.76 136,660.83
Stamp duty 1,164,004.73 518,916.20
Other taxes 4,541.15 1,320.00
Total 7,022,914.20 4,855,726.45
46. Administrative expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 19,829,421.54 24,654,297.67
Office expenses 110,795.99 119,662.56
Transport and travel expenses 44,514.01 7,695.23
Business entertainment expenses 48,702.75 52,838.20
Depreciation and amortization 2,224,953.37 2,118,529.00
Intermediary agency service fees 269,351.37 906,265.09
Others 1,231,201.37 958,541.63
Total 23,758,940.40 28,817,829.38
47. Selling expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 3,521,903.27 6,048,479.76
Advertising marketing expenses 4,453,697.92 2,008,639.20
Depreciation and amortization 1,361,625.33 1,576,507.45
Office expenses 173,640.67 178,798.04
Property management, water, and
65,294.90 81,594.29
electricity fees
Transport and travel expenses 134,013.99 344,110.00
Insurance and supervisory charges 273,533.86 173,654.37
Others 671,873.13 1,551,315.90
Total 10,655,583.07 11,963,099.01
48. R&D expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 1,203,314.39
Information technology service expenses 20,222.89
Depreciation and amortization 24,087.95
Others 105,407.57
Total 1,353,032.80
49. Financial expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Interest expenses 5,197,620.36 4,751,743.88
Less: Interest income 2,112,971.50 1,835,834.14
Less: Capitalized interest 0.00 1,510,324.98
137
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Exchange profits and losses 409,047.03 -64,306.88
Others 192,197.54 50,454.91
Total 3,685,893.43 1,391,732.79
50. Other incomes
Unit: RMB
Sources of other incomes Amount incurred in the current period Amount incurred in the previous period
I. Government subsidies included in
5,606,545.82 4,465,807.01
other incomes
Including: Government subsidies related
880,145.82 626,237.73
to deferred income
Government subsidies directly included
4,726,400.00 3,839,569.28
in current profits and losses
II. Other items related to daily activities
73,501.77 9,658.93
and included in other incomes
Including: Individual income tax
73,501.77 9,658.93
withholding fees
Total 5,680,047.59 4,475,465.94
51. Income from changes in fair value
Unit: RMB
Source of gain from changes in fair value Amount incurred in the current period Amount incurred in the previous period
Trading financial assets 219,551.09 -2,783,204.51
Trading financial liabilities -1,908,400.00 -2,464,470.00
Derivative instruments of effective
-1,292,744.45 -18,135.65
hedges
Total -2,981,593.36 -5,265,810.16
52. Investment incomes
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from long-term equity
investments calculated through the 20,511,753.40 3,011,611.29
equity method
Investment income from trading
4,062,385.40 8,468,244.22
financial assets during the holding period
Closing income from commodity futures
-9,867,534.55 -2,556,837.71
contracts and T+D contracts (hedging)
Total 14,706,604.25 8,923,017.80
53. Credit impairment losses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Bad debt loss of accounts receivable -751,209.02 6,669.80
Bad debt loss of other receivables -106,335.89
138
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Total -857,544.91 6,669.80
54. Asset impairment losses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Loss on diminution in value of
inventories and impairment loss on -3,700.50
contract performance cost
Total -3,700.50
55. Income from disposal of assets
Unit: RMB
Sources of income from asset disposal Amount incurred in the current period Amount incurred in the previous period
Gains from disposal of fixed assets
-227.20 -81,800.45
(losses to be listed with "-")
56. Non-operating incomes
Unit: RMB
Amount included in current
Amount incurred in the Amount incurred in the
Item non-recurring profits and
current period previous period
losses
Gains from the exchange of
22,690.35 0.00
non-monetary assets
Gains from unpayable
667,747.57 262,274.08 667,747.57
payments
Others 444,285.68 132,217.70 444,285.68
Total 1,112,033.25 417,182.13 1,112,033.25
57. Non-operating expenses
Unit: RMB
Amount included in current
Amount incurred in the Amount incurred in the
Item non-recurring profits and
current period previous period
losses
Loss from scrapping of non-
338.65
current assets
Inventory loss of fixed assets
Overdue payments and
liquidated damage 107,338.47 119,344.47 107,338.47
expenditure
Others
Total 107,338.47 119,683.12 107,338.47
139
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58. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 17,857,884.67 12,664,515.42
Deferred tax expenses 1,805,746.63 -197,855.50
Total 19,663,631.30 12,466,659.92
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in the current period
Total profit 99,173,375.34
Income tax expenses based on statutory/applicable tax rate 24,793,343.84
Effect of different tax rates applied to subsidiaries -172,289.02
Effect of income tax during the period before adjustment 857,973.45
Effect of non-taxable income -5,127,938.35
Impact of non-deductible costs, expenses, and losses 959,784.57
Effect of using deductible losses of unrecognized deferred
-1,270,542.30
income tax assets in the previous period
Effect of deductible temporary difference or deductible losses
-376,700.89
on unrecognized deferred tax assets in the current period
Income tax expenses 19,663,631.30
59. Other comprehensive income
Refer to Note VII. 41 for details
60. Items in the cash flow statement
(1) Other cash related to operating activities
Other cash received relating to operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Guarantee and security deposits 32,184,951.83 12,249,467.54
Interest income 597,641.87 1,848,535.56
Current accounts and others 77,849,320.09 153,004,930.68
Total 110,631,913.79 167,102,933.78
Other cash paid relating to operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Out-of-pocket expenses 20,185,486.98 15,722,806.60
Guarantee and security deposits 18,341,700.56 7,957,202.52
140
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Current accounts and others 68,134,321.12 152,374,457.27
Total 106,661,508.66 176,054,466.39
(2) Other cash related to investing activities
Other cash received relating to investing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from futures liquidation 669,327.72 827,883.63
Total 669,327.72 827,883.63
Other cash paid relating to investing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Futures trading fee and liquidation losses 8,115,811.58 7,567,454.81
Total 8,115,811.58 7,567,454.81
(3) Cash related to financial activities
Other cash paid related to financing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Refund of minority shareholders' capital 4,900,000.00
Principal and interest on lease liabilities
754,459.08 628,844.00
paid
Total 754,459.08 5,528,844.00
Changes in liabilities arising from financing activities
□ Applicable Not applicable
61. Supplementary information to the cash flow statement
(1) Supplementary information for the cash flow statement
Unit: RMB
Supplementary information Amount in the current period Amount in the previous period
1. Adjustment of net profit to cash flow
from operating activities:
Net profits 79,509,744.04 45,088,066.43
Add: Impairment provision for assets 857,544.91 -2,969.30
Depreciation of fixed assets,
depletion of oil and gas assets, and
20,210,193.63 17,367,778.17
depreciation of productive biological
assets
Depreciation of right-of-use
4,726,718.58 1,801,160.77
assets
Amortization of intangible assets 280,390.51 1,098,090.38
Amortization of long-term
3,448,584.09 2,042,705.37
prepaid expenses
141
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Losses on the disposal of fixed
assets, intangible assets, and other long- 227.20 81,800.45
term assets (gain to be listed with "-")
Losses from the scrapping of
fixed assets (gains to be listed with "-")
Losses from changes in fair value
2,981,593.36 5,265,810.16
(gains to be listed with "-")
Financial expenses (gains to be
3,685,893.43 1,391,732.79
listed with "-")
Investment losses (gains to be
-14,706,604.25 -8,923,017.80
listed with "-")
Decrease of deferred income tax
1,895,046.72 -253,211.24
assets (increase to be listed with "-")
Increases in deferred tax
-89,300.07 55,355.72
liabilities (decrease to be listed with "-")
Decrease of inventory (increase
86,288,295.78 74,299,085.33
to be listed with "-")
Decrease in operating receivables
-95,752,549.66 -174,414,312.99
(increase to be listed with "-")
Increase in operating items
13,973,710.65 24,859,983.86
payable (decrease to be listed with "-")
Others
Net cash flow from operating
107,309,488.92 -10,241,941.90
activities
2. Major investment and financing
activities that do not involve cash
receipts and expenditures:
Transfer of debt into capital
Convertible corporate bonds due
within one year
Fixed assets acquired through
financial lease
3. Net changes in cash and cash
equivalents:
Period-end balance of cash 155,899,714.76 261,521,100.08
Less: Period-beginning balance of
160,223,387.69 391,406,829.36
cash
Add: Period-end balance of cash
equivalents
Less: Period-beginning balance of
cash equivalents
Net increase in cash and cash
-4,323,672.93 -129,885,729.28
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Period-end balance Period-beginning balance
142
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I. Cash 155,899,714.76 160,223,387.69
Including: Cash on hand 324.59 17,215.98
Cash at bank available for
119,615,641.97 120,361,253.61
payment at any time
Other monetary funds available
36,283,748.20 39,844,918.10
for payment on demand
III. Period-end balance of cash and cash
155,899,714.76 160,223,387.69
equivalents
(3) Monetary funds not belonging to cash or cash equivalents
Unit: RMB
Amount in the previous Reasons for not belonging to
Item Amount in the current period
period cash and cash equivalents
Futures and options account
4,104,642.60 51,328,583.35
margin
Gold leasing security deposits
40,477,138.89 8,188,990.60
and interests
Margin payable security
28,123,726.04
deposits and interests
Amount under judicial control 600,000.00
Total 72,705,507.53 60,117,573.95
62. Monetary items in foreign currency
(1) Foreign currency monetary items
Unit: RMB
Period-end foreign currency Period-end equivalent RMB
Item Conversion exchange rate
balance balance
Cash at bank and on hand
Including: USD 23,634.26 7.11 168,074.30
EUR
HKD 41,198.56 0.90 37,237.65
Accounts receivable
Including: USD
EUR
HKD
Long-term borrowings
Including: USD
EUR
HKD
143
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(2) Description of overseas operating entities, including the disclosure of the primary places of business
abroad, bookkeeping base currency, and the basis for its selection for significant overseas operating
entities. If there is a change in the bookkeeping base currency, the reason for the change shall also be
disclosed.
□ Applicable Not applicable
63. Leasing
(1) The Company as the leasee
Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable Not applicable
Lease expenses for short-term leases or low-value assets that are simplified
□ Applicable Not applicable
Situations involving sale and leaseback transactions
(2) The Company as the lessor
Operating leases with the Company as the lessor
Applicable □ Not applicable
Unit: RMB
Including: Incomes related to variable
Item Lease income lease payments that are not included in
the measurement of lease receipts
Lease 138,078,049.35 0.00
Total 138,078,049.35
Finance lease with the Company as the lessor
□ Applicable Not applicable
Annual undiscounted lease receipts in the next five years
□ Applicable Not applicable
Reconciliation of undiscounted lease payments to net lease investment
(3) Recognition of selling profit or loss on a finance lease as a producer or distributor
□ Applicable Not applicable
VIII. R&D Expenditures
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 1,375,987.07
Consulting expenses 57,193.66
Travel expenses 39,312.82
Amortization expenses 24,087.95
Information technology service expenses 20,222.89
144
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Other expenses 8,901.09
Total 1,525,705.48
Including: Expense account-based R&D
1,353,032.80
expenses
Capitalized R&D expenses 172,672.68
1. R&D projects eligible for capitalization
Unit: RMB
Amount increase in the current period Decrease in the current period
Period- Internal Recognized Transferred Period-end
Item beginning developme as to current
Others balance
balance nt intangible profits and
expenditure assets losses
Material
buying
mini- 172,672.68 172,672.68
program
R&D
Total 172,672.68 172,672.68
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Composition of the group
Unit: RMB
Principal Shareholding proportion
Subsidiary Registered Registered Business Acquisition
place of
name capital location nature Direct Indirect method
business
Shenzhen
Tellus
Xinyongtong 32,900,000.0 Establishmen
Shenzhen Shenzhen Commerce 5.00% 95.00%
Automobile 0 t
Development
Co., Ltd.
Shenzhen
Bao'an
Establishmen
Shiquan 2,000,000.00 Shenzhen Shenzhen Commerce 100.00%
t
Industry Co.,
Ltd.
Shenzhen
SDG Tellus 31,150,000.0 Establishmen
Shenzhen Shenzhen Commerce 100.00%
Real Estate 0 t
Co., Ltd.
Shenzhen
Tellus
Establishmen
Chuangying 1,500,000.00 Shenzhen Shenzhen Commerce 100.00%
t
Technology
Co., Ltd.
Shenzhen 9,607,800.00 Shenzhen Shenzhen Commerce 51.00% Establishmen
145
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Xinyongtong t
Motor
Vehicle
Inspection
Equipment
Co., Ltd.
Shenzhen
Automobile
58,960,000.0 Establishmen
Industry and Shenzhen Shenzhen Commerce 100.00%
0 t
Trade Co.,
Ltd.
Shenzhen
Automobile
Industry 11,110,000.0 Establishmen
Shenzhen Shenzhen Commerce 100.00%
Supply and 0 t
Marketing
Company
Shenzhen
Zhongtian 366,221,900. Establishmen
Shenzhen Shenzhen Commerce 100.00%
Industry Co., 00 t
Ltd.
Shenzhen
Huari Toyota
Establishmen
Sales & 2,000,000.00 Shenzhen Shenzhen Commerce 60.00%
t
Service Co.,
Ltd.
Shenzhen
Tellus
Treasury
50,000,000.0 Establishmen
Supply Chain Shenzhen Shenzhen Commerce 100.00%
0 t
Treasury
Supply Chain
Company
Shenzhen
Jewelry
100,000,000. Establishmen
Industry Shenzhen Shenzhen Commerce 65.00%
00 t
Service Co.,
Ltd.
Shanghai
Fanyue Establishmen
3,500,000.00 Shanghai Shanghai Commerce 100.00%
Diamond t
Co., Ltd.
Guorun Gold
200,000,000. Establishmen
Shenzhen Shenzhen Shenzhen Commerce 36.00% 3.25%
00 t
Co., Ltd.
Explanation of the fact that the shareholding percentage is different from the proportion of votes in subsidiaries:
The shareholding proportion in Guorun Gold Shenzhen Co., Ltd. is different from the proportion of voting rights, and the basis for
holding half or less of the voting rights but still controlling the investee:
In June 2022, the Company cooperated with its subsidiaries Shenzhen Jewelry Industry Service Co., Ltd., Shenzhen HTI Group
Co., Ltd., Chow Tai Fook Jewellery Park (Wuhan) Co., Ltd., Chow Tai Seng Jewelry Co., Ltd., Beijing Caishikou Department
Store Co., Ltd., and Shenzhen ZHL Industrial Co., Ltd. to jointly invest in the establishment of Guorun Gold Shenzhen Co., Ltd.
Among them, the Company contributed RMB 72 million, with a shareholding ratio of 36%; Shenzhen Jewelry Industry Service
Co., Ltd., a subsidiary of the Company, contributed RMB 10 million, with a shareholding ratio of 5%; Shenzhen HTI Group Co.,
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Ltd. held 10%, and other shareholders held 49% in total. The Company signed a concerted action agreement with Shenzhen HTI
Group Co., Ltd., stipulating that Shenzhen Hi-tech Investment Group Co., Ltd. shall maintain a consensus with the Company when
voting at the shareholders' meeting and the board of directors of Guorun Gold Shenzhen Co., Ltd. Therefore, the Company and its
subsidiaries actually hold 51% of the voting rights of Guorun Gold Shenzhen Co., Ltd., and have control over Guorun Gold
Shenzhen Co., Ltd.
The basis for the Company's control over the investee when holding half or less of the voting rights and the Company's control
over the investee when holding more than half of the voting rights:
Basis for control over the important structured entities incorporated in the consolidated scope:
Basis to determine whether the company is the agent or the principal:
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profit or loss
Shareholding Dividends declared to Balance of minority
attributable to minority
Subsidiary name proportion of minority minority shareholders shareholders' equity at
shareholders in the
shareholders in the current period the end of the period
current period
Guorun Gold Shenzhen
60.75% 407,133.92 117,138,993.94
Co., Ltd.
Explanation of the difference between the shareholding percentage of minority shareholders of subsidiaries and the voting rights
ratio:
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Period-end balance Period-beginning balance
Subsid Curren Non- Curren Non-
iary Non- Total Non- Total
Curren Total t current Curren Total t current
name current liabiliti current liabiliti
t assets assets liabiliti Liabili t assets assets liabiliti Liabili
assets es assets es
es ties es ties
Guoru
n Gold
403,49 410,84 207,88 212,25 401,43 408,84 205,99 210,93
Shenz 7,341, 4,374, 7,409, 4,935,
8,614. 0,604. 3,243. 7,898. 6,296. 5,673. 7,337. 3,146.
hen 989.55 654.74 377.22 809.24
75 30 47 21 18 40 37 61
Co.,
Ltd.
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Subsidiary Total Cash flows Total Cash flows
name Operating comprehen from Operating comprehen from
Net profits Net profits
revenue sive operating revenue sive operating
income activities income activities
Guorun
-
Gold 1,427,534,5 90,487,735. 520,277,94 - -
670,179.30 670,179.30 46,812,821.
Shenzhen 81.98 85 8.63 792,883.11 792,883.11
71
Co., Ltd.
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2. Equity in joint ventures or associates
(1) Important associates and joint ventures
Shareholding proportion Accounting
Name of joint method for the
Principal place Registered
venture or Business nature investment in
of business location Direct Indirect
associate joint ventures
or associates
I. Joint ventures
Shenzhen
Equity method-
Tellus-Gmond Leasing
Shenzhen Shenzhen 50.00% based
Investment Co., services
accounting
Ltd.
II. Associates
Shenzhen
Renfu Tellus Equity method-
Automobile
Automobiles Shenzhen Shenzhen 35.00% based
sales
Service Co., accounting
Ltd.
Explanation of the shareholding percentage being different from the proportion of voting rights in joint ventures or associates:
Basis for telling holding less than 20% of the voting rights but enjoying a significant influence, or holding 20% or more of the
voting rights but not enjoying a significant influence:
(2) Main financial information of important joint ventures
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Shenzhen Tellus-Gmond Investment Co., Shenzhen Tellus-Gmond Investment Co.,
Ltd. Ltd.
Current assets 28,679,203.46 60,614,147.72
Including: Cash and cash equivalents 39,278,424.27 59,631,516.56
Non-current assets 313,933,362.79 326,363,493.98
Total assets 342,612,566.25 386,977,641.70
Current liabilities 45,375,209.61 47,521,951.61
Non-current Liabilities 214,176,000.00 240,954,000.00
Total liabilities 259,551,209.61 288,475,951.61
Minority interests
Equity attributable to shareholders of the
83,061,356.64 98,501,690.09
parent company
Shares of net assets calculated as per the
41,530,678.32 49,250,845.05
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Book value of equity investments to joint 41,530,678.32 49,250,845.05
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ventures
Fair value of equity investment in joint
ventures with public offers
Operating revenue 68,891,890.69 54,145,037.15
Financial expenses 4,854,802.36 5,391,641.93
Income tax expenses 5,728,222.17 5,589,775.67
Net profits 14,559,666.49 16,769,327.00
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 14,559,666.49 16,769,327.00
Dividends received from joint ventures
15,000,000.00 15,000,000.00
in the current year
(3) Major financial information of important associates
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Shenzhen Renfu Tellus Automobiles Shenzhen Renfu Tellus Automobiles
Service Co., Ltd. Service Co., Ltd.
Current assets 203,424,177.68 167,519,575.18
Non-current assets 26,420,595.69 32,145,888.83
Total assets 229,844,773.37 199,665,464.01
Current liabilities 154,411,693.39 158,552,555.81
Non-current Liabilities 1,231,962.74
Total liabilities 154,411,693.39 159,784,518.55
Minority interests
Equity attributable to shareholders of the
75,433,079.98 39,880,945.46
parent company
Shares of net assets calculated as per the
26,401,577.99 13,958,330.91
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Book value of equity investments in
26,401,577.99 13,958,330.91
associates
Fair value of equity investments in
associates with public offers
Operating revenue 385,757,907.13 529,459,351.87
Net profits 35,552,134.52 -14,291,457.36
Net profit from discontinued operations
Other comprehensive income
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Total comprehensive income 35,552,134.52 -14,291,457.36
Dividends received from associates in
the current year
(4) Summary of financial information of unimportant joint ventures and associates
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Joint ventures:
Total book value of investments 13,458,348.66 13,302,311.60
Total amount of the following items at
the shareholding percentage
--Net profit 156,037.06 -371,042.13
--Total comprehensive income 156,037.06 -371,042.13
Associates:
Total amount of the following items at
the shareholding percentage
--Net profit 632,636.00
--Total comprehensive income 632,636.00
(5) Excess losses incurred by joint ventures or associates
Unit: RMB
Unrecognized loss Unrecognized loss in the Unrecognized loss
Name of joint venture or
accumulated in the previous current period (or net profit accumulated at the end of the
associate
period shared in the current period) current period
Shenzhen Tellus Automobile
98,865.26 98,865.26
Service Chain Co., Ltd.
Shenzhen Yongtong Xinda
1,176,212.73 1,176,212.73
Testing Equipment Co., Ltd.
X. Government Subsidies
1. Government subsidies recognized as receivable amounts at the end of the reporting period
□ Applicable Not applicable
Reasons for not receiving the estimated amount of government subsidies at the expected time point
□ Applicable Not applicable
(2) Liability-related projects with government subsidies
Applicable □ Not applicable
Unit: RMB
Period- New granted Amount Amount Other
Accounting Period-end Asset/income
beginning amount in included transferred to changes in
item balance -related
balance the current non- other the current
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period operating incomes in period
revenues in the current
the current period
period
Deferred
9,617,683.53 880,145.82 8,737,537.71 Asset-related
income
3. Government subsidies included in current profits and losses
Applicable □ Not applicable
Unit: RMB
Accounting item Amount incurred in the current period Amount incurred in the previous period
Other incomes 5,680,047.59 4,475,465.94
XI. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The major financial instruments of the Company include monetary capitals, notes receivable, accounts
receivable, other receivables, non-current assets due within one year, other current assets, trading financial
assets, other investment on bonds, other equity instrument investment, long-term receivables, accounts payable,
other payables, short-term borrowings, trading financial liabilities, non-current liabilities due within one year,
lease liabilities, and long-term payables. Details of each financial instrument of the Company are disclosed in
the notes related. Risks related to these financial instruments and risk management policies for reducing these
risks adopted by the Company are described as follows. The management of the Company manages and
monitors these risk exposures to ensure that the above risks are controlled in a limited scope.
Objectives and policies of risk management
The major risks that may be caused by the Company’s financial instruments include credit risks, liquidity risks,
and market risks (including exchange rate risk, interest rate risk, and commodity price risk).
The Company's overall risk management plan aims to mitigate the potential adverse effects on the Company's
financial performance caused by the unpredictability of the financial market.
The Company has formulated risk management policies to identify and analyze all the risks faced by the
Company, set up the acceptable risk level, and design corresponding internal control procedures to monitor the
Company's risk level. These risk management policies and related internal control systems will be reviewed
regularly to accommodate market conditions or changes in the Company's operating activities. The internal
audit department will also regularly or irregularly check whether the implementation of such internal control
systems complies with risk management policies.
The Company disseminates risks in financial instruments through appropriate diversified investments and
business portfolios and formulates corresponding risk management policies to reduce risks concentrated in a
single industry, specific regions, or specific counterparties.
(1) Credit risks
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Credit risk is the risk of financial loss of the Company caused by a counterparty's failure to meet its obligations
in a contract.
The Company manages credit risks through portfolio classification. Credit risks mainly arise from deposits in
banks, notes receivable, accounts receivable, other receivables, long-term receivables, other debt investments,
etc.
Bank deposits of the Company are mainly kept in state-owned banks and other large and medium-sized listed
banks, which are mainly deposited in financial institutions with good reputations and high credit ratings. It is
expected that there will be no significant credit risk for bank deposits of the Company. For notes receivable,
accounts receivable, other receivables, and long-term receivables, relevant policies are established by the
Company to control credit risk exposure. The Company evaluates customers' credit qualifications based on their
financial status, credit records, and other factors such as current market conditions, and sets corresponding
credit periods. The Company will monitor the credit records of customers periodically. For customers with poor
credit records, measures such as written payment demand, shortening the credit period, or canceling the credit
period will be adopted by the Company, to ensure the overall credit risk is in the controllable scope.
The Company's debtors of accounts receivable are customers distributed in different industries and areas. The
Company continuously conducts credit assessments on the financial status of accounts receivable and, when
appropriate, purchases credit guarantee insurance.
The maximum credit risk exposure tolerable by the Company is the book amount of each of the financial asset
items in the balance sheet. The Company has not provided any other guarantee that may cause the Company to
bear credit risks.
Among the accounts receivable of the Company, the accounts receivable from the top five customers account
for 47.26% of the total accounts receivable (2023: 43.23%). Additionally, among the other receivables, the
amounts owed by the top five companies in amount in arrear represent 49.97% of the Company's total other
receivables (2023: 47.55%).
(2) Liquidity risks
Liquidity risk refers to the risk of a shortage of funds arising from the performance of the Company's
obligations to settle through the delivery of cash or for other financial assets.
In managing liquidity risk, the Company maintains sufficient cash and cash equivalents as deemed necessary by
management and monitors them to meet operational needs and mitigate the impact of cash flow volatility. The
management of the Company monitors the utilization of bank loans and ensures compliance with borrowing
agreements. Meanwhile, the Company has obtained commitments from major financial institutions regarding
the provision of adequate reserve funds to meet the Company's fund requirements in the short and long terms.
Sources of the Company's working capital include funds generated from operating activities, bank loans, and
other borrowings. At the end of the period, the unused bank borrowing limit of the Company was RMB 560
million (RMB 667 million at the end of the previous year).
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At the end of the period, financial liabilities and off-balance sheet guaranteed items held by the Company are
analyzed as follows based on the expiration date of undiscounted remaining contract cash flow (unit: RMB
10,000):
June 30, 2024
Project name
Within 1 year 1-2 years 2-3 years Over 3 years Total
Financial liabilities:
Short-term borrowings 16,011.91 16,011.91
Trading financial liabilities 3,685.86 3,685.86
Derivative financial liabilities 57.51 57.51
Accounts payable 12,460.38 12,460.38
Other payables 13,205.47 13,205.47
Current portion of non-current
715.55 715.55
liabilities
Lease liabilities 521.00 912.07 6,102.07 7,535.14
Long-term payables 392.02 392.02
Total 46,136.67 521.00 912.07 6,494.09 54,063.83
At the end of the previous year, financial liabilities and off-balance sheet guaranteed items held by the
Company were analyzed as follows based on the expiration date of undiscounted remaining contract cash flow
(unit: RMB 10,000):
December 31, 2023
Project name
Within 1 year 1-2 years 2-3 years Over 3 years Total
Financial liabilities:
Short-term borrowings 14,513.17 14,513.17
Trading financial
5,688.20 5,688.20
liabilities
Derivative financial
0.14 0.14
liabilities
Accounts payable 13,583.44 13,583.44
Other payables 12,682.70 12,682.70
Current portion of non-
1,066.04 1,066.04
current liabilities
Lease liabilities 995.42 912.07 6,102.07 8,009.56
Long-term payables 392.02 392.02
Total 47,533.69 995.42 912.07 6,494.09 55,935.27
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows and may
therefore differ from their carrying amount in the balance sheet.
The maximum guarantee amount of the signed guarantee contract does not represent the amount to be paid.
(3) Market risks
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial
instruments due to market price development. Market risks include interest rate risk, exchange rate risk, and
other price risks.
Interest rate risk
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Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate
due to changes in the market interest rate. Interest rate risk can come from recognized interest-bearing financial
instruments and unrecognized financial instruments (such as certain loan commitments).
The interest rate risk of the Company mainly arises from long-term borrowings from banks, bonds payable, and
other long-term debts with interest. Financial liabilities with a floating interest rate expose the Company to cash
flow interest rate risk, and financial liabilities with a fixed interest rate expose it to a fair value interest rate risk.
The Company determines the ratio of fixed-rate and floating-rate contracts based on the market environment
and maintains an appropriate combination of fixed-rate and floating-rate instruments through regular review and
monitoring.
The Company keeps an eye on the effect of changes in interest rates on the Company's interest rate risk. At
present, the Company does not take any interest rate hedging policy. However, the management is responsible
for monitoring interest rate risk and will consider hedging significant interest rate risks when necessary. The
increase in interest rates will increase the cost of new interest-bearing debts and the Company's unpaid interest
expense on interest-bearing debts accrued at floating interest rates, which will have a significant adverse effect
on the Company's financial results. The management will duly make adjustments according to the latest market
conditions. These adjustments may reduce interest rate risks via interest rate swaps.
For financial instruments held on the balance sheet date that expose the Company to fair value interest rate risk,
the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact after re-
measurement of the above financial instruments according to the new interest rate assuming that the interest rate
on the balance sheet date changes. For floating rate non-derivative instruments held on the balance sheet date
that expose the Company to cash flow interest rate risk, the impact of net profit and shareholders' equity in the
above sensitivity analysis is the impact of the above interest rate changes on the estimated annual interest
expenses or income. The previous year's analysis was based on the same assumption and methodology.
Exchange rate risk
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due
to changes in foreign exchange rates. Exchange rate risk may come from financial instruments valued at a
foreign currency other than the bookkeeping base currency.
The main business of the Company is conducted in China and settled in RMB. Therefore, the Company believes
that the exchange rate risk faced is not significant.
The Company keeps an eye on the effect of the fluctuation in exchange rates on its exchange rate risk. At
present, the Company does not take any action to avoid the exchange rate risk. However, the management is
responsible for monitoring exchange rate risks and will consider hedging significant interest rate risks when
necessary.
Capital management
The objective of the Company's capital management policy is to ensure the sustainability of operations, thereby
providing returns to shareholders and benefiting other stakeholders, while maintaining an optimal capital
structure to reduce the cost of capital.
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To maintain or adjust the capital structure, the Company may adjust the financing method and the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares and other equity instruments, or
sell assets to reduce liabilities.
The Company monitors capital structure based on the asset-liability ratio (i.e. total liabilities divided by total
assets). At the end of the period, the Company's asset-liability ratio is 27.92% (27.99% at the end of the
previous year).
2. Hedging
(1) The Company conducts hedging business for risk management
Applicable □ Not applicable
To avoid the risk of changes in the fair value of gold raw materials held by them (i.e. the hedged risk), the
subsidiaries of the Company, Guorun Gold Shenzhen Co., Ltd. and Shenzhen Tellus Treasury Supply Chain
Tech Co., Ltd., analyzed the expected purchase transactions of gold raw materials based on the number of gold
bars booked and invested by customers and, on this basis, used hedging instruments such as deferred delivery
contracts for spot gold of Shanghai Gold Exchange, gold futures contracts of Shanghai Futures Exchange, and
exchange gold options. In this way, the risk of gold product price decline caused by the sharp drop in gold price
can be avoided. Guorun Gold, a subsidiary of the Company, formulated the Hedging Transaction Management
Guidelines, which clearly stipulates the approval authority, operation process, and risk control for the Company
to carry out hedging business.
The approval procedures for the Company to use its own funds to carry out hedging business comply with
relevant national laws, regulations, and the Articles of Association. The gold deferred transaction hedging
business carried out to avoid fluctuations in gold prices is conducive to controlling operational risks and
improving the Company's ability to resist market fluctuations.
(2) The Company carries out eligible hedging business and applies hedge accounting
The book value of the hedged items and related adjustments are as follows:
H1 2024
Accumulated amount of Changes in
hedging adjustment for fair the fair
Book value of the hedged item value of hedged items (included Listed value of
in the book value of hedged items of hedged
items) the items used
balance as a basis
Item
sheet for
including recognizing
Asset Liability Asset Liability hedged an invalid
items portion of
hedges in
2023 (note)
Commodity price
68,886,072.56 - 21,982.96 -
risk-inventory
2023
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Accumulated amount of Changes in
hedging adjustment for fair the fair
Book value of the hedged item value of hedged items (included value of
Listed
in the book value of hedged hedged
items of
items) items used
the balance
as a basis
Item sheet
for
including
recognizing
hedged
Asset Liability Asset Liability an invalid
items
portion of
hedges in
2023 (note)
Commodity price
85,802,395.07 - 442,847.41 - Inventories -
risk-inventory
Changes in the book value and fair value of hedging instruments are as follows:
H1 2024
Book value of hedging Changes in the
Nominal amount
instrument fair value of
Listed items of hedging
the balance sheet instruments used
Item including as a basis for
of hedging
Asset Liability hedging recognizing an
instrument
instruments invalid portion of
hedges in 2023
(note)
Derivative
Commodity price
68,886,072.56 0 575,060.00 financial -
risk-inventory
asset/liability
2023
Book value of hedging Changes in the
Nominal amount
instrument fair value of
Listed items of hedging
the balance sheet instruments used
Item including as a basis for
of hedging
Asset Liability hedging recognizing an
instrument
instruments invalid portion of
hedges in 2023
(note)
Derivative
Commodity price
85,802,395.07 298,320.00 1,380.00 financial -
risk-inventory
asset/liability
(3) The Company carries out hedging business for risk management and expects to achieve the risk management objectives,
but does not apply hedge accounting
□ Applicable Not applicable
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3. Financial assets
(1) Classification of transfer methods
□ Applicable Not applicable
(2) Financial assets derecognized due to transfers
□ Applicable Not applicable
(3) Continuing involvement in the transfer of financial assets
□ Applicable Not applicable
XII. Disclosure of Fair Value
1. Ending fair value of the assets and liabilities measured at fair value
Unit: RMB
Period-end fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous Fair
-- -- -- --
Value Measurement
(I) Trading financial
302,715,467.76 74,799,015.27 377,514,483.03
assets
1. Financial assets at
fair value through 302,715,467.76 74,799,015.27 377,514,483.03
profit or loss
(2) Equity instrument
74,799,015.27 74,799,015.27
investments
(4) Structured deposits
302,715,467.76 302,715,467.76
and financial products
(II) Other debt
105,986,078.92 105,986,078.92
investments
(III) Other equity
383,317.67 383,317.67
instrument investments
(VI) Arbitraged items 68,886,072.56 68,886,072.56
Total assets
continuously measured 68,886,072.56 408,701,546.68 75,182,332.94 552,769,952.18
at fair value
(VII) Specified as
financial liabilities at
fair value with changes 36,858,570.74 36,858,570.74
into current profits and
losses
(VIII) Derivative
575,060.00 575,060.00
financial liabilities
1. Hedging instruments 575,060.00 575,060.00
Total amount of 37,433,630.74 0.00 0.00 37,433,630.74
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liabilities continuously
measured at fair value
II. Non-continuous fair
-- -- -- --
value measurement
2. Basis for determining the market price of items concerning continuous and non-continuous level 1 fair
value measurement
Level 1: Quotations for the same assets or liabilities in active markets (unadjusted).
The Company designates the financial liabilities measured at fair value through profit or loss as the physical
gold leasing business from banks by the Company. There is an active market for gold (i.e. Shanghai Gold
Exchange), and the Shanghai Gold Exchange publishes the closing price of gold contract transactions on each
trading day. At the end of the period, the Company uses the closing price published by the Shanghai Gold
Exchange on the last trading day as the basis for determining the market price.
The hedged items of the Company are gold product inventories, and the hedging instruments are
assets/liabilities arising from changes in the fair value of gold futures contracts and gold spot deferred
settlement contracts held by the Company. The Company determines the fair value based on the public
quotations of gold spot transactions and futures transactions of Shanghai Gold Exchange and Shanghai Futures
Exchange.
3. Qualitative and quantitative information about valuation techniques and key parameters of items
concerning continuous and non-continuous level 2 fair value measurement
Level 2: Observable input values other than market quotations for assets or liabilities in level 1 are used directly
(i.e. price) or indirectly (i.e. derived from price).
The trading financial assets held by the Company are bank financial products with one-year principal
guaranteed floating income, and their fair value is determined based on discounted future cash flows calculated
at an agreed expected rate of return. There is no material difference between the fair value and book cost of
other non-current financial assets held by the Company.
Information on level 2 fair value measurement
Period-end fair
Content Valuation technique Input value
value
Derivative
instrument:
Derivative financial Discounted cash flow
-- Expected interest rate
assets method
Derivative financial Discounted cash flow
-- Expected interest rate
liabilities method
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4. Qualitative and quantitative information about valuation techniques and key parameters of items
concerning continuous and non-continuous level 3 fair value measurement
5. Information on adjustment between beginning book value and ending book value of items subject to
continuous level 3 fair value measurement and sensitivity analysis of unobservable parameters
Level 3: Any input value (unobservable input value) that is not based on observable market data is used for
assets or liabilities.
Equity instrument investments are measured by the Company based on the investment cost as a reasonable
estimate of the fair value, because the operating environment, operating conditions, and financial conditions of
the investee, China PUFA Machinery Industry Co., Ltd., have not changed significantly.
Quantitative information of significant unobservable input values used in level 3 fair value measurement
Period-end fair Valuation Unobservable input Range (weighted
Content
value technique value average)
Equity instrument
investment:
Unlisted equity
investment 383,317.67 Net assets N/A N/A
6. Reasons for transfer and the policies applicable at the time of transfer for items subject to continuous
fair value measurement and having transferred between levels in the current period
In this year, the fair value measurement of financial assets and financial liabilities of the Company did not
transfer between Level 1 and Level 2, or transfer into or out of Level 3.
For financial instruments traded in active markets, the Company determines their fair value based on active
market quotes. For financial instruments not traded in active markets, the Company uses valuation techniques to
establish their fair value. The used valuation model mainly includes the discounted cash flow model, market
comparable company model, etc. The input values of valuation techniques mainly include the risk-free interest
rate, benchmark interest rate, exchange rate, credit point difference, liquidity premium, discount for lack of
marketability (DLOM), etc.
XIII. Related Parties and Related Transactions
1. Information of the parent company
Shareholding Vote proportion of
Name of the parent Registered proportion of the the parent
Business nature Registered capital
company location parent company to company to the
the Company Company
Real estate
Shenzhen Special
development and
Economic Zone RMB
Shenzhen operation, 49.09% 49.09%
Development 6,179,406,000
domestic
Group Co., Ltd.
commerce
Information of the parent company
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Shenzhen Special Economic Zone Development Group Co., Ltd. (hereinafter referred to as "SDG Group") was
established on June 20, 1982 with the investment of the State-owned Assets Supervision and Management
Commission of Shenzhen Municipal People's Government. The Company now holds a business license with a
unified social credit code of 91440300192194195C, and a registered capital of RMB 6,179,406,000.
The ultimate controlling party of the Company is the State-owned Assets Supervision and Management
Commission of Shenzhen Municipal People’s Government.
2. Information of the subsidiaries of the Company
For details of the Company's subsidiaries, please refer to Note IX.1.
3. Information of the joint ventures and associates of the Company
The important joint ventures or associates of the Company are detailed in Note IX. 2.
The information on other joint ventures or associates that produced balance by conducting related-party transactions with the
Company in the current period or in the earlier period is shown as follows:
Name of joint venture or associate Relationship with the Company
Shenzhen Tellus Xinyongtong Automobile Service Co., Ltd. Associate of the Company
Shenzhen Tellus Automobile Service Chain Co., Ltd. Associate of the Company
Shenzhen Yongtong Xinda Testing Equipment Co., Ltd. Associate of the Company
Shenzhen Xiandao New Materials Co., Ltd. Associate of the Company
Shenzhen Telixing Investment Co., Ltd. Joint venture of the Company
4. Information of other related parties
Name of other related party Relationship between other related party and the Company
Shenzhen SDG Microfinance Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Tiane Industrial Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Machinery & Equipment Import & Export Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Real Estate Co., Ltd. Controlled subsidiary of the Company's parent company
Hongkong Yujia Investment Limited Controlled subsidiary of the Company's parent company
Shenzhen SDG Engineering Management Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Tellus Yangchun Real Estate Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Longgang Tellus Real Estate Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Tellus Property Management Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Service Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Building Technology Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Liming Optoelectronics (Group) Co., Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Wahlai Decoration & Furniture Co., Ltd. Associate of the Company's parent company
Gu Zhiming Key managerial staff member
Enterprise subject to significant impact by key management
Shenzhen Zhigu Jinyun Technology Co., Ltd.
personnel
Shenzhen ZHL Industrial Co., Ltd. Minority shareholder of important subsidiary
Beijing Caishikou Department Store Co., Ltd. Minority shareholder of important subsidiary
Enterprise controlled by minority shareholders of important
Shenzhen Niubisi Jewelry Trading Co., Ltd.
subsidiary
Enterprise controlled by minority shareholders of important
Shenzhen Yuepengjin Jewelry Co., Ltd.
subsidiary
Enterprise controlled by minority shareholders of important
Shenzhen Yuepengjin E-commerce Co., Ltd.
subsidiary
Controlled subsidiary of the parent company of the Company's
Guoren Property & Casualty Insurance Co., Ltd.
parent company
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Shenzhen SDG Huari Automobile Enterprise Co., Ltd. Subsidiary previously controlled within 12 months
ISSTech Information Technology Co., Ltd. Controlled subsidiary of the Company's parent company
5. Information of related transactions
(1) Related transactions of purchase/sales of commodities and rendering/receiving of labor services
Information on purchase of commodities/receipt of labor services
Unit: RMB
Amount incurred Exceeding the Amount incurred
Content of related Approved
Related party in the current transaction amount in the previous
party transaction transaction amount
period or not period
Shenzhen SDG Receiving labor
10,111,049.17 40,220,000.00 No 6,681,836.37
Service Co., Ltd. services
Shenzhen SDG
Tellus Property Receiving labor
872,337.13 1,980,000.00 No 1,782,277.76
Management Co., services
Ltd.
Shenzhen SDG
Building Receiving labor
135,849.06
Technology Co., services
Ltd.
Shenzhen ZHL Receiving labor
412,229.08 1,863,167.50
Industrial Co., Ltd. services
Shenzhen Zhigu
Jinyun Technology Purchasing goods 3,274.32
Co., Ltd.
Shenzhen
Receiving labor
Yuepengjin 40,625.67 61,212.43
services
Jewelry Co., Ltd.
Shenzhen SDG
Engineering Receiving labor
120,000.00 1,400,000.00 No 671,200.00
Management Co., services
Ltd.
Shenzhen Zhigu
Software usage
Jinyun Technology 0.00 1,248,224.49
fees
Co., Ltd.
Guoren Property &
Purchasing
Casualty Insurance 232,830.19 800,000.00 No
services
Co., Ltd.
Shenzhen Wahlai
Receiving labor
Decoration & 7,474,168.85 7,373,982.82
services
Furniture Co., Ltd.
Information on Sales of Commodities/Provision of Labor Services
Unit: RMB
Content of related party Amount incurred in the Amount incurred in the
Related party
transaction current period previous period
Beijing Caishikou
Sales of goods 3,391,541.93
Department Store Co., Ltd.
Shenzhen Niubisi Jewelry
Rendering labor services 0.00 1,897,096.53
Trading Co., Ltd.
Shenzhen ZHL Industrial Co.,
Rendering labor services 339,874.20 44,150.94
Ltd.
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Shenzhen Yuepengjin E-
Sales of goods 66,320,646.02 79,086,389.48
commerce Co., Ltd.
Shenzhen SDG Tellus
Property Management Co., Rendering labor services 1,126.55
Ltd.
Shenzhen Special Economic
Zone Development Group Rendering labor services 7,244.25
Co., Ltd.
Shenzhen Telixing
Rendering labor services 283,018.88
Investment Co., Ltd.
(2) Information of related lease
The Company as the lessor:
Unit: RMB
Lease income recognized in Lease income recognized in
Name of the lessee Type of assets leased
the current period the previous period
Shenzhen Renfu Tellus
Automobiles Service Co., House leasing 2,595,238.09 2,725,000.00
Ltd.
Shenzhen SDG Service Co.,
House leasing 1,309,654.02 1,150,990.47
Ltd.
Shenzhen SDG Tellus
Property Management Co., House leasing 82,730.47 65,730.00
Ltd.
Shenzhen SDG Microfinance
House leasing 610,182.85 604,295.03
Co., Ltd.
Shenzhen Yongtong Xinda
House leasing 8,400.00 16,000.00
Testing Equipment Co., Ltd.
Shenzhen Yuepengjin Jewelry
House leasing 1,116,635.87 1,199,121.84
Co., Ltd.
(3) Remuneration of key management personnel
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management
2,201,400.00 4,131,300.00
personnel
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Period-end balance Period-beginning balance
Project name Related party
Book balance Bad-debt provision Book balance Bad-debt provision
Shenzhen
Accounts Yuepengjin E-
19,649,000.00 196,490.00
receivable commerce Co.,
Ltd.
Accounts Beijing Caishikou
409,309.20 4,093.09 656,267.50 6,562.68
receivable Department Store
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Co., Ltd.
Shenzhen Niubisi
Accounts
Jewelry Trading 0.00 0.00 246,015.46 2,460.15
receivable
Co., Ltd.
Shenzhen SDG
Accounts Tellus Property
127.66 1.28 127.66 1.28
receivable Management Co.,
Ltd.
Shenzhen SDG
Accounts
Microfinance Co., 18,420.25 1,421.12 142,112.35 1,421.12
receivable
Ltd.
Shenzhen
Accounts
Yuepengjin 1,640,346.94 14,019.96 1,401,995.50 14,019.96
receivable
Jewelry Co., Ltd.
Shenzhen SDG
Engineering
Prepayments 21,226.42 0.00 21,226.42
Management Co.,
Ltd.
Shenzhen Branch
of Guoren
Prepayments Property and 42,767.29 0.00
Casualty Insurance
Co., Ltd.
ISSTech
Information
Prepayments 593,247.17 0.00
Technology Co.,
Ltd.
Shenzhen SDG
Other receivables Tellus Electronics 23,852.64 23,852.64 23,852.64 23,852.64
Co., Ltd.
Shenzhen Tellus
Automobile
Other receivables 1,359,297.00 1,359,297.00 1,359,297.00 1,359,297.00
Service Chain Co.,
Ltd.
Shenzhen Xiandao
Other receivables New Materials 660,790.09 660,790.09 660,790.09 660,790.09
Co., Ltd.
Shenzhen Tellus
Xinyongtong
Other receivables 114,776.33 114,776.33 114,776.33 114,776.33
Automobile
Service Co., Ltd.
Shenzhen SDG
Liming
Other receivables 2,886.00 2,886.00 2,886.00 2,886.00
Optoelectronics
(Group) Co., Ltd.
Shenzhen SDG
Tellus Property
Other receivables 33,318.36 1,473.18 33,318.36 1,473.18
Management Co.,
Ltd.
Shenzhen
Yongtong Xinda
Other receivables 531,882.24 531,882.24 531,882.24 531,882.24
Testing Equipment
Co., Ltd.
Shenzhen Telixing
Other receivables Investment Co., 195,430.93 2,595.66 259,566.39 2,595.66
Ltd.
Other receivables Shenzhen ZHL 566,013.23 5,660.13 2,607,443.00 26,074.43
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Industrial Co., Ltd.
Shenzhen Tellus
Long-term Automobile
6,146,228.91 6,146,228.91 6,146,228.91 6,146,228.91
receivables Service Chain Co.,
Ltd.
(2) Payables
Unit: RMB
Period-beginning book
Project name Related party Period-end book balance
balance
Shenzhen SDG Real Estate
Accounts payable 6,054,855.46
Co., Ltd.
Shenzhen Machinery &
Accounts payable Equipment Import & Export 45,300.00 45,300.00
Co., Ltd.
Shenzhen SDG Tellus
Accounts payable Property Management Co., 263,224.88 336,533.57
Ltd.
Shenzhen ZHL Industrial Co.,
Accounts payable 32,639.21 212,993.43
Ltd.
Shenzhen Yuepengjin Jewelry
Accounts payable 21,100.00 20,680.00
Co., Ltd.
Shenzhen Wahlai Decoration
Accounts payable 5,578,143.86 334,493.34
& Furniture Co., Ltd.
Shenzhen SDG Service Co.,
Accounts payable 5,828,787.92 3,368,791.51
Ltd.
Shenzhen SDG Engineering
Accounts payable 4,000.00 79,000.00
Management Co., Ltd.
Shenzhen Zhigu Jinyun
Accounts payable 45,652.00 53,714.23
Technology Co., Ltd.
Shenzhen SDG Engineering
Advances from customers 21,226.42
Management Co., Ltd.
Shenzhen SDG Microfinance
Other payables 237,804.66 237,804.66
Co., Ltd.
Shenzhen SDG Service Co.,
Other payables 40,992.00 40,992.00
Ltd.
Shenzhen Yuepengjin Jewelry
Other payables 388,102.00
Co., Ltd.
Shenzhen Torch Spark Plug
Other payables 2,000.00
Industry Co., Ltd.
Shenzhen Yongtong Xinda
Other payables 5,602.99
Testing Equipment Co., Ltd.
Shenzhen Tellus Automobile
Other payables 800.00
Service Chain Co., Ltd.
Shenzhen Renfu Tellus
Other payables Automobiles Service Co., 833,334.00 833,334.00
Ltd.
Shenzhen SDG Tellus
Other payables Property Management Co., 15,841.59 15,841.59
Ltd.
Shenzhen Special Economic
Other payables Zone Development Group 3,000.00
Co., Ltd.
Shenzhen Tellus Yangchun
Other payables 476,217.49 476,217.49
Real Estate Co., Ltd.
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Shenzhen Machinery &
Other payables Equipment Import & Export 1,554,196.80 1,554,196.80
Co., Ltd.
Shenzhen Wahlai Decoration
Other payables 401,140.08
& Furniture Co., Ltd.
Shenzhen SDG Engineering
Other payables 149,338.46
Management Co., Ltd.
Shenzhen SDG Huari
Other payables Automobile Enterprise Co., 11,436,392.71 11,436,392.71
Ltd.
Hongkong Yujia Investment
Other payables 2,146,404.58 2,146,404.58
Limited
Shenzhen SDG Tiane
Other payables 23,930.50 23,930.50
Industrial Co., Ltd.
Shenzhen Longgang Tellus
Other payables 1,095,742.50 1,095,742.50
Real Estate Co., Ltd.
XIV. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
None
2. Contingencies
(1) Important contingencies existing on the balance sheet date
None
(2) In case of no important contingencies to be disclosed, a description shall be given
The Company has no important contingencies to be disclosed.
XV. Matters after the Balance Sheet Date
1. Description of other matters after the balance sheet date
None
XVI. Other Significant Matters
1. Segmented information
(1) Determination basis and accounting policy of reporting segments
According to the Company's internal organizational structure, management requirements, and internal reporting
system, the business of the Company is divided into four reporting segments. These reporting segments are
determined based on the financial information required by the Company's daily internal management. The
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Group's management regularly evaluates the operating results of these reporting segments to determine the
allocation of resources to them and evaluate their performance.
The reporting segments of the Company include:
(1) Leasing and services, real estate, and commercial real estate leasing;
(2) Jewelry sales and services, and wholesale and retail of gold and jewelry.
The segment reporting information is disclosed according to the accounting policy and measurement standard
adopted when each segment reports to the management, and the accounting policy and measurement basis are in
correspondence with those of formulating financial statements.
(2) Financial information of reporting segments
Unit: RMB
Wholesale and Leasing and Offset among
Item Others Total
retail of jewelry services segments
Revenue from
1,441,734,815.25 140,347,039.25 210,884.25 -2,268,989.90 1,580,023,748.85
main business
Cost of main
1,410,424,605.61 42,635,859.64 0.00 -1,134,474.49 1,451,925,990.76
business
Total assets 593,582,257.47 2,942,194,868.97 5,027,865.60 -1,047,576,310.57 2,493,228,681.47
Total liabilities 306,759,181.09 654,095,668.37 16,184,338.62 -281,029,360.75 696,009,827.33
XVII. Notes for Major Items of the Parent Company's Financial Statement
1. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 21,529,222.67 22,182,052.01
1-2 years 124,487.53 124,487.53
Over 3 years 488,163.08 488,163.08
Over 5 years 488,163.08 488,163.08
Total 22,141,873.28 22,794,702.62
(2) Disclosure by bad debt accrual method
Unit: RMB
Period-end balance Period-beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor Provisio Provisio
y Book Book
Proporti n value Proporti n value
Amount Amount Amount Amount
on proporti on proporti
on on
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Account
s
receivab
le with
484,803. 484,803. 484,803. 484,803.
provisio 2.19% 100.00% 0.00 2.13% 100.00%
08 08 08 08
n for bad
debts on
a single
basis
Includ
ing:
Account
s
receivab
le for
which 21,657,0 229,707. 21,427,3 22,309,8 229,707. 22,080,1
97.81% 1.06% 97.87% 1.03%
provisio 70.20 30 62.90 99.54 30 92.24
n for bad
debts is
made by
portfolio
Includ
ing:
1.
Account
21,657,0 229,707. 21,427,3 22,309,8 229,707. 22,080,1
receivab 97.81% 1.06% 97.87% 1.03%
70.20 30 62.90 99.54 30 92.24
le age
portfolio
22,141,8 714,510. 21,427,3 22,794,7 714,510. 22,080,1
Total 100.00% 3.23% 100.00% 3.13%
73.28 38 62.90 02.62 38 92.24
Category name of bad debt provision made on an individual basis:
Unit: RMB
Period-beginning balance Period-end balance
Name Bad-debt Bad-debt Provision Reasons for
Book balance Book balance
provision provision proportion provision
Overlong
Shenzhen
account
Bijiashan
172,000.00 172,000.00 172,000.00 172,000.00 100.00% receivable age;
Entertainment
expected to be
Co., Ltd.
unrecoverable
Overlong
account
Gong Yanqing 97,806.64 97,806.64 97,806.64 97,806.64 100.00% receivable age;
expected to be
unrecoverable
Overlong
Guangzhou
account
Lemin
86,940.00 86,940.00 86,940.00 86,940.00 100.00% receivable age;
Computer
expected to be
Center
unrecoverable
Overlong
account
Others 128,056.44 128,056.44 128,056.44 128,056.44 100.00%
receivable age;
expected to be
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unrecoverable
Total 484,803.08 484,803.08 484,803.08 484,803.08
Category name of bad debt provision made on a portfolio basis:
Unit: RMB
Period-end balance
Name
Book balance Bad-debt provision Provision proportion
1. Account receivable age
21,657,070.20 229,707.30 1.06%
portfolio
Total 21,657,070.20 229,707.30
Explanation of the basis for determining the portfolio:
Whether to accrue bad debt provision of accounts receivable according to expected credit loss:
Applicable □ Not applicable
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Bad-debt provision Expected credit losses throughout the duration throughout the duration Total
for the next 12 months (no credit impairment (credit impairment has
occurs) occurred)
Balance on January 1,
229,707.30 484,803.08 714,510.38
2024
Balance on January 1,
2024 in the current
period
Balance as of June 30,
229,707.30 484,803.08 714,510.38
2024
(3) Bad debt provision provided, recovered, or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Period- Accounts Period-end
Category beginning recovered or
Provision Write-off Others balance
balance transferred
back
Provision for
bad debts made
484,803.08 484,803.08
on an
individual basis
Provision for
bad debts made
229,707.30 229,707.30
on a portfolio
basis
Total 714,510.38 714,510.38
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(4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers
Unit: RMB
Period-end balance
of bad debt
Proportion in total
Period-end balance proportion of
Period-end balance ending balance of
Period-end balance of accounts accounts
Company name of accounts accounts
of contract assets receivable and receivable and
receivable receivable and
contract assets impairment
contractual assets
provision of
contractual assets
Shenzhen
Southwest Gold
1,953,168.77 1,953,168.77 8.82% 20,462.08
Management
Center Co., Ltd.
Chow Sang Sang
1,806,504.02 1,806,504.02 8.16% 19,350.61
(China) Co., Ltd.
Shenzhen Helin
1,192,961.52 1,192,961.52 5.39% 12,867.21
Jewelry Co., Ltd.
Shenzhen Baijue
Industrial
624,335.60 624,335.60 2.82% 4,232.50
Development Co.
Ltd.
Shenzhen Xinyufu
578,894.49 578,894.49 2.61% 6,314.84
Jewelry Co., Ltd.
Total 6,155,864.40 6,155,864.40 27.80% 63,227.24
2. Other receivables
Unit: RMB
Item Period-end balance Period-beginning balance
Dividends receivable 1,305,581.86 1,305,581.86
Other receivables 55,062,463.27 46,126,945.18
Total 56,368,045.13 47,432,527.04
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Item (or the investee) Period-end balance Period-beginning balance
China Pufa Machinery Industry Co., Ltd. 1,305,581.86 1,305,581.86
Total 1,305,581.86 1,305,581.86
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Whether impairment
has occurred and the
Item (or the investee) Period-end balance Account receivable age Reason for no recovery
basis for determining
impairment
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The financial and
operating conditions of
China Pufa Machinery the Company are
1,305,581.86 1-2 years Not paid yet
Industry Co., Ltd. normal, and the
dividends receivable
are not impaired.
Total 1,305,581.86
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of payment Period-end book balance Period-beginning book balance
Other temporary payments receivable 18,037,201.93 15,738,436.97
Deposits and security deposits 1,528,913.96 1,774,070.79
Concerned intercourse funds within the
49,281,994.70 42,400,084.74
consolidation scope of receivables
Total 68,848,110.59 59,912,592.50
(2) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 52,549,655.62 43,614,137.53
1-2 years 1,937,642.51 1,937,642.51
2-3 years 643,606.04 643,606.04
Over 3 years 13,717,206.42 13,717,206.42
3-4 years 39,273.66 39,273.66
Over 5 years 13,677,932.76 13,677,932.76
Total 68,848,110.59 59,912,592.50
3) Classification and disclosure through the method for recognizing bad debt
Unit: RMB
Period-end balance Period-beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor Provisio Provisio
y Book Book
Proporti n value Proporti n value
Amount Amount Amount Amount
on proporti on proporti
on on
Provisio
n for bad
debts
13,644,6 13,644,6 13,644,6 13,644,6
made on 19.82% 100.00% 0.00 22.77% 100.00%
41.06 41.06 41.06 41.06
an
individu
al basis
Includ
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ing:
Provisio
n for bad
debts
55,203,4 141,006. 55,062,4 46,267,9 141,006. 46,126,9
made on 80.18% 0.26% 77.23% 0.30%
69.53 26 63.27 51.44 26 45.18
a
portfolio
basis
Includ
ing:
Account
receivab 4,392,56 72,610.5 4,319,95 2,093,79 72,610.5 2,021,18
6.38% 1.65% 3.49% 3.47%
le age 0.87 1 0.36 5.91 1 5.40
portfolio
Portfolio
of
deposit
and 1,528,91 68,395.7 1,460,51 1,774,07 68,395.7 1,705,67
2.22% 4.47% 2.96% 3.86%
security 3.96 5 8.21 0.79 5 5.04
deposit
receivab
le
Related
intercour
se funds
within 49,281,9 49,281,9 42,400,0 42,400,0
71.58% 0.00 0.00% 70.77%
the 94.70 94.70 84.74 84.74
consolid
ation
scope
68,848,1 13,785,6 55,062,4 59,912,5 13,785,6 46,126,9
Total 100.00% 20.02% 100.00% 23.01%
10.59 47.32 63.27 92.50 47.32 45.18
Category name of bad debt provision made on an individual basis:
Unit: RMB
Period-beginning balance Period-end balance
Name Bad-debt Bad-debt Provision Reasons for
Book balance Book balance
provision provision proportion provision
Provision for Long account
bad debts made receivable age;
13,644,641.06 13,644,641.06 13,644,641.06 13,644,641.06 100.00%
on an expected to be
individual basis unrecoverable
Total 13,644,641.06 13,644,641.06 13,644,641.06 13,644,641.06
Category name of bad debt provision made on a portfolio basis:
Unit: RMB
Period-end balance
Name
Book balance Bad-debt provision Provision proportion
Account receivable age
4,392,560.87 72,610.51 1.65%
portfolio
Portfolio of deposit and
1,528,913.96 68,395.75 4.47%
security deposit receivable
Related intercourse funds
within the consolidation 49,281,994.70 0.00 0.00%
scope
Total 55,203,469.53 141,006.26
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Accrue bad debt provision of accounts receivable according to expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Bad-debt provision Expected credit losses throughout the duration throughout the duration Total
for the next 12 months (no credit impairment (credit impairment has
occurs) occurred)
Balance on January 1,
141,006.26 13,644,641.06 13,785,647.32
2024
Balance on January 1,
2024 in the current
period
Balance as of June 30,
141,006.26 13,644,641.06 13,785,647.32
2024
Changes in book balance with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
4) Bad debt provision provided, recovered, or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Period- Accounts Period-end
Category beginning recovered or Write-off or
Provision Others balance
balance transferred verification
back
Provision for
bad debts made
13,644,641.06 13,644,641.06
on an
individual basis
Provision for
bad debts made
141,006.26 141,006.26
on a portfolio
basis
Total 13,785,647.32 13,785,647.32
5) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Period-end balance
Account
Company name Nature of payment Period-end balance ending balance of of provision for
receivable age
other receivables bad debts
Shenzhen Tellus
Treasury Supply
Intercourse funds
Chain Treasury 46,800,000.00 Within 1 year 67.98%
within the Group
Supply Chain
Company
Shenzhen
Zhonghao (Group) Intercourse funds 5,000,000.00 Over 5 years 7.26% 5,000,000.00
Co., Ltd.
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Shenzhen Jinbeili
Electric Appliance Intercourse funds 2,706,983.51 Over 5 years 3.93% 2,706,983.51
Co., Ltd.
Shenzhen Jewelry
Intercourse funds
Industry Service 2,334,941.11 Within 1 year 3.39%
within the Group
Co., Ltd.
Shenzhen
Petrochemical Intercourse funds 1,923,910.07 Over 5 years 2.79% 1,923,910.07
(Group) Co., Ltd.
Total 58,765,834.69 85.35% 9,630,893.58
3. Long-term equity investment
Unit: RMB
Period-end balance Period-beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
693,657,847.64 1,956,000.00 691,701,847.64 696,131,539.12 1,956,000.00 694,175,539.12
subsidiaries
Investment in
associates and 91,177,767.29 9,787,162.32 81,390,604.97 86,298,649.89 9,787,162.32 76,511,487.57
joint ventures
Total 784,835,614.93 11,743,162.32 773,092,452.61 782,430,189.01 11,743,162.32 770,687,026.69
(1) Investments in subsidiaries
Unit: RMB
Period- Period- Changes in the current period
Period-end Period-end
beginning beginning
Provision balance balance of
Investee balance balance of Additional Reduced
for Others (book impairment
(book impairment investment investment
impairment value) provision
value) provision
Shenzhen
SDG Tellus 31,152,888. 31,152,888.
Real Estate 87 87
Co., Ltd.
Shenzhen
Tellus
Chuangyin 3,000,000.0 2,473,691.4
526,308.52
g 0 8
Technolog
y Co., Ltd.
Shenzhen
Tellus
Xinyongto
ng 2,883,644.2 2,883,644.2
Automobil 6 6
e
Developme
nt Co., Ltd.
Shenzhen
369,680,52 369,680,52
Zhongtian
2.90 2.90
Industry
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Co., Ltd.
Shenzhen
Automobil
126,251,07 126,251,07
e Industry
1.57 1.57
and Trade
Co., Ltd.
Shenzhen
SDG Huari
Automobil
0.00
e
Enterprise
Co., Ltd.
Shenzhen
Huari
Toyota 1,807,411.5 1,807,411.5
Sales & 2 2
Service
Co., Ltd.
Shenzhen
Xinyongto
ng Motor
4,900,000.0 4,900,000.0
Vehicle
0 0
Inspection
Equipment
Co., Ltd.
Shenzhen
Tellus
Treasury
Supply
50,000,000. 50,000,000.
Chain
00 00
Treasury
Supply
Chain
Company
Shenzhen
Hanli High
1,956,000.0 1,956,000.0
Tech 0.00
0 0
Ceramics
Co., Ltd.
Shenzhen
Jewelry
32,500,000. 32,500,000.
Industry
00 00
Service
Co., Ltd.
Guorun
Gold 72,000,000. 72,000,000.
Shenzhen 00 00
Co., Ltd.
694,175,53 1,956,000.0 2,473,691.4 691,701,84 1,956,000.0
Total
9.12 0 8 7.64 0
(2) Investments in associates and joint ventures
Unit: RMB
Invest Period Period Changes in the current period Period Period
or - - Additi Reduc Invest Adjust Chang Cash Provisi Others -end -end
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beginn beginn onal ed ment ment es in divide on for balanc balanc
ing ing invest invest profit to other nd or impair e e of
balanc balanc ment ment or loss other equity profit ment (book impair
e e of recogn compr declare value) ment
(book impair ized ehensi d to be provisi
value) ment throug ve distrib on
provisi h the incom uted
on equity e
metho
d
I. Joint ventures
Shenz
hen
Tellus-
Gmon 49,250 15,000 41,530
7,279,
d ,845.0 ,000.0 ,678.3
833.26
Invest 6 0 2
ment
Co.,
Ltd.
Shenz
hen
Telixin
13,302 13,458
g 156,03
,311.6 0.00 ,348.6
Invest 7.06
0 6
ment
Co.,
Ltd.
62,553 15,000 54,989
Subtot 7,435,
,156.6 ,000.0 ,026.9
al 870.32
6 0 8
II. Associates
Shenz
hen
Renfu
Tellus 13,958 12,443 26,401
Autom ,330.9 ,247.0 ,577.9
obiles 1 8 9
Servic
e Co.,
Ltd.
Hunan
Chang
yang 1,810, 1,810,
Industr 540.70 540.70
ial Co.,
Ltd.
Shenz
hen
Jieche
ng 3,225, 3,225,
Electro 000.00 000.00
nics
Co.,
Ltd.
Shenz 4,751, 4,751,
hen 621.62 621.62
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Xianda
o New
Materi
als
Co.,
Ltd.
13,958 12,443 26,401
Subtot 9,787, 9,787,
,330.9 ,247.0 ,577.9
al 162.32 162.32
1 8 9
76,511 19,879 15,000 81,390
9,787, 9,787,
Total ,487.5 ,117.4 ,000.0 ,604.9
162.32 162.32
7 0 0 7
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses?
□ Applicable Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow?
□ Applicable Not applicable
4. Operating revenue and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Costs Revenue Costs
Main business 55,668,957.83 21,857,801.26 34,050,043.81 14,948,857.82
Total 55,668,957.83 21,857,801.26 34,050,043.81 14,948,857.82
Information related to transaction value assigned to residual performance obligations:
As of the end of the reporting period, the amount of revenue corresponding to performance obligations for contracts that have been
signed but not yet fulfilled or completed is RMB . Among this, RMB is expected to be recognized as revenue during the year
of RMB is as revenue for , and RMB is as revenue for .
5. Investment income
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment income
71,225,000.00
calculated through the cost method
Income from long-term equity
investments calculated through the 19,879,117.40 3,011,611.29
equity method
Investment income from trading
2,162,425.56 7,437,966.44
financial assets during the holding period
Interest income from large-sum
1,589,244.45
certificates of deposit
Total 94,855,787.41 10,449,577.73
XVIII. Supplementary Information
1. Breakdown of non-recurring profits and losses of the current period
Applicable □ Not applicable
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Unit: RMB
Item Amount Note
Profits and losses from disposal of non-
-227.20 Disposal of fixed assets
current assets
Government subsidies included in the
current profits and losses (excluding
those that are closely related to the
Company's normal business operations,
5,606,545.82 Government subsidy
in line with national policies and
regulations, and granted per defined
criteria, with a continuous influence on
the Company's profits and losses)
Profit or loss from changes in the fair
value of financial assets and financial
liabilities held by the Company as a non-
financial company, as well as profit or
loss from the disposal of the financial 2,373,536.49 Mainly from money management returns
assets and financial liabilities, except in
effective hedging activities related to the
normal operating activities of the
Company.
Other non-operating incomes and Primarily consists of lease contract
expenditures apart from the aforesaid 1,004,694.78 modification fees and penalties for
items lessees' early termination of leases
Less: Amount of influence of income tax 2,237,809.41
Amount of influence of minority
539,047.10
stockholder's interests (after-tax)
Total 6,207,693.38 --
Other gains or losses conforming to the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.
Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses
□ Applicable Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit during the reporting
Weighted average ROE Basic earnings per share Diluted earnings per share
period
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of the 4.66% 0.1778 0.1778
Company
Net profit attributed to
ordinary shareholders of the
Company after non-recurring 4.28% 0.1634 0.1634
profits and losses are
deducted
177
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3. Difference in accounting data under domestic and foreign accounting rules
(1) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the international accounting standards and Chinese accounting standards
□ Applicable Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the foreign accounting standards and Chinese accounting standards
□ Applicable Not applicable
(3) Specify the reasons for differences in accounting data under domestic and foreign accounting
standards; if the adjustment is made to data audited by the overseas audit firm, specify the name of the
audit firm
178
